Plug Power (PLUG) is a stock in the hydrogen fuel cell sector. We have not covered this sector lately but this might be changing. We consider Plug Power the sector leader. Every time a sector leader does something special, in bullish or bearish terms, we pay attention. Not only do we pay attention to the stock but also the whole sector. The hydrogen fuel cell sector may not (yet) qualify as one of the TOP 3 investing opportunities of 2019 but it is certainly a sector for the longer term.
This article will not look into fundamentals and financials. We are in the process of preparing a Plug Power stock forecast for 2020 and beyond which will cover fundamentals and financials.
We focus on the chart of Plug Power in this article.
Plug Power is in the process of breaking out. The monthly chart has some awesome insights:
- The secular bear market that started in 2000 ended in 2014. See the straight lines of the falling channel.
- However, after 2014 there was arguably a tactical bear market for several years. See the dotted lines of the falling channel.
- The chart suggests this tactical bear market is about to end … NOW. See the breakout in progress annotated with the green circle.
- Potentially, there is the start of this new channel that we annotated with the green lines. The newly rising channel started in 2016/2017.
Plug Power is a play on the hydrogen fuel cell trend which was once hot on speculation but faded away in recent years when ‘ambition met reality’. As Plug Power starts rising again it does so on fundamental strength!
We will follow up in a next article with the fundamentals in order to understand how they relate to the chart insights outlined above.