Can $PLUG Power through this resistance level? – June 7, 2022PLUG TAN
This is Scott with your Chart of the Day. I want to take a look at Plug Power ( NASDAQ: PLUG ). Recently solar stocks, if I look at the TAN ( NYSEARCA: TAN ) ETF, have been holding up nicely. We have this beautiful V-shaped recovery stopping right a the daily 200-period simple moving average.
There is kind of a shift, as oil prices go higher, to some of these alternative fuels and alternative sources of energy and Plug Power ( NASDAQ: PLUG ) is one of those. So I started a small position in Plug Power ( NASDAQ: PLUG ) recently within this sideways consolidation. And I am looking for a move out of this kind of low handle is what I am calling it, you can see it kind of looks like a cup and then a handle. But it’s a low handle because we are still under that 50-day moving average and the 200-day moving average.
What I am looking for is a move through this level coming on higher than average volume. I just have a tiny piece of the stock right now because I don’t know what it is going to do. But I want to keep an eye on it just in case it does follow the solar sector higher. I am going to have an alert right around that 19.37 level for a potential add buy on this move, with a short-term target of the 50-day moving average, that’s around that 21.60 level.
If that happens a potential reward of 14.9 percent and my risk is at the low of this short consultative base. Small here, risking about 7 percent, hoping to get 14 percent and so that is a 2:1 risk/reward IF this trade works out. That is what I am looking at in this market as one of the setups that I am telling members about over at stockmarketmentor.com. So I am going to set an alert and we will see how this trade plays out.