July 14, 2023 11:22 AM | 2 minutes read
FuelCell Energy, Inc (NASDAQ:FCEL) increased over 6% greater at one point on Friday early morning on ongoing bullish momentum after negating a bear flag pattern Wednesday.
The stock has actually risen about 20% because July 7 in the middle of basic market strength triggered by a lower-than-expected June inflation report.
On July 14, in spite of the early session rise, the stock was being up to near flat, suggesting the regional top might remain in.
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Having decreased about 92% because the Feb. 10, 2021 all-time high of $29.44, FuelCell might be in for a longer-term turnaround or the recent relocation north might be part of a shorter-term dead cat bounce — a short-lived healing that winds up being a bull trap. Which of those 2 circumstances pertains to fulfillment is most likely to be identified by whether the stock can separate from a coming down pattern line that’s been holding it down because Feb. 3.
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A coming down pattern line functions as a resistance level and suggests there are more sellers than purchasers although the rate continues to fall.
In order for a pattern line to be thought about legitimate, the stock should touch the line on a minimum of 3 events. After that, the more times the pattern line is touched, the weaker it ends up being.
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The FuelCell Chart: Although FuelCell negated its sag, the stock hasn’t yet validated a brand-new uptrend on the day-to-day chart by forming a greater low above the most recent lower low of $2, which was printed on July 6.
If FuelCell closes the trading day under the $2.50 level, the stock will form a doji or shooting star candlestick, which might show the regional top has actually happened and FuelCell will backtrack on Monday.
- Should FuelCell fall lower over the next couple of trading days, bullish traders can look for the stock to ultimately print a bullish turnaround candlestick, such as a doji or hammer candlestick, to show a greater low will happen and the uptrend will be validated. When FuelCell backtracks, the stock might discover assistance at the eight-day and 21-day rapid moving averages and the 50-day basic moving average, which are all trending at about $2.27.
- Bullish traders wish to see an uptrend validated and after that for FuelCell to continue trending greater up until the stock separates from the coming down pattern line. If FuelCell can break above that location, a longer-term bull cycle might be on the horizon.
- Bearish traders wish to FuelCell fall under the moving averages, which might speed up a relocate to the drawback.
- Once FuelCell drops under those levels, bearish traders will wish to see it take place on high volume for more self-confidence an uptrend won’t play out.
- FuelCell has resistance above at $2.61 and $2.73 and assistance listed below at $2.32 and $2.
Image: FuelCellEnergy.com
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