Plug Power Charges Ahead (And Potentially Much Higher) Amid Amazon Deal

Shares of hydrogen supplier Plug Power (PLUG) surged Thursday on the heels of an announcement of a green hydrogen supply deal with online retail giant Amazon (AMZN) . In our July 7 review of PLUG we wrote that, “Nimble traders could go long PLUG on strength above $20. Look for gains to the $25-$27 area.”  

Let’s check out the charts again today.  

In the updated daily bar chart of PLUG, below, we can see the price gains since the stock closed above $20. The shares are now trading above the rising 50-day moving average line and above the still declining 200-day line.

The daily On-Balance-Volume (OBV) line shows strength from May telling us that buyers of PLUG have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is yahoo the zero line but recently crossed to the downside for a take profit sell signal. 

In this weekly Japanese candlestick chart of PLUG, below, we see a positive-looking chart. The shares are trading above the 40-week moving average line.

The weekly OBV line shows strength since May. The MACD oscillator has crossed to the upside for a cover shorts buy signal and is now close to crossing the zero line for an outright buy message. 

 

In this daily Point and Figure chart of PLUG, below, we can see a potential upside price target of $60. A trade at $32 is needed to refresh the uptrend. 

 

In this weekly Point and Figure chart of PLUG, below, we can see a nearby price target of $32, rounding up. 

 

Bottom-line strategy: Traders who may still be long PLUG from earlier recommendations should continue to hold those longs and raise stop protection to $25. The $60 area is our next price target.