Possible Moving Average Crosses Makes Plug Power Attractive Long Term

By Unknown Monday, September 29, 2014
Plug Power has been breaking down as of late, and the short term charts paint a picture of range bound, choppy price action for the time being. A large GenKey order could change all of that, but we are comforted in our long position because of longer term charts.

On the longer term monthly chart, we see an imminent bullish cross of the 20 Moving Average moving above the 50 Moving Average. To us, this says price appreciation in the long term.

On the weekly, we see two positive events priming. The first is a possible bullish cross of the 100 Moving Average over the 200 Moving Average. The slope of these crossing lines is not as decisive/upward as the monthly chart above, but none the less, a bullish cross is a bullish cross. Another event we see, is the possibility of PLUG finding some relative support at the $4.15 level. A bounce off of the weekly 50 Moving Average is in the cards.

Despite the positive fundamentals developing at PLUG, we also like the longer term technical picture. To increase exposure to our original August 2013 position, we have decided to purchase the JAN 2016 $5 Call options at a cost of ~$100 per contract.
The Wall Street Fox

The Wall Street Fox utilizes fundamental and technical analysis to generate investment ideas. TWSF holds a MBA, and is currently preparing for the Chartered Market Technician (CMT) designation.

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