Fluence Corporation - BUY
Updated
My first recommendation is Fluence Corporation.
Fluence corporation is a global leader in mid-sized, decentralized water and wastewater solutions.
From a fundamental and macro view, I like the stock as water, wastewater treatment and sustainability is an increasingly important topic in society. Increasing expenditure in water treatment is inevitable, China for example continues to provide significant expenditure in this sector, providing high revenue opportunities for Fluence. Why I like Fluence in particular is due to their MABR technology, which allows decentralized packaged treatment plants, which is a quick and cost effective for towns/cities to treat their wastewater without costly transport of fluids to the waste water treatment plants located 100kms away.
From a technical view, looking at the long term trend of the stock it has slowly trended down from a high of $1.00 to a low of $0.38 . With support eventually being found in the $0.38 price, where it has traded in a trading range between $0.38 and $0.46 for a solid 3 or 4 months. Quite recently the company has won a few new contracts and the stock has been in an uptrend to a new price of $0.48. The chart now displays a flag pattern between the prices of $0.45 and $0.48 indicating a possible breakout once the resistance of $0.5 is broken. Furthermore a new resistance line has formed according at its 200 day moving average price of $0.42 cents. This was confirmed on the 14th of August when the price dipped and rebounded back to its current flag pattern prices.
Overall, I believe this stock is a buy both from a fundamental and technical point of view.
Catalysts for a price increase are:
- Further contract wins
- Breakout past the $0.5 resistance mark
Fluence corporation is a global leader in mid-sized, decentralized water and wastewater solutions.
From a fundamental and macro view, I like the stock as water, wastewater treatment and sustainability is an increasingly important topic in society. Increasing expenditure in water treatment is inevitable, China for example continues to provide significant expenditure in this sector, providing high revenue opportunities for Fluence. Why I like Fluence in particular is due to their MABR technology, which allows decentralized packaged treatment plants, which is a quick and cost effective for towns/cities to treat their wastewater without costly transport of fluids to the waste water treatment plants located 100kms away.
From a technical view, looking at the long term trend of the stock it has slowly trended down from a high of $1.00 to a low of $0.38 . With support eventually being found in the $0.38 price, where it has traded in a trading range between $0.38 and $0.46 for a solid 3 or 4 months. Quite recently the company has won a few new contracts and the stock has been in an uptrend to a new price of $0.48. The chart now displays a flag pattern between the prices of $0.45 and $0.48 indicating a possible breakout once the resistance of $0.5 is broken. Furthermore a new resistance line has formed according at its 200 day moving average price of $0.42 cents. This was confirmed on the 14th of August when the price dipped and rebounded back to its current flag pattern prices.
Overall, I believe this stock is a buy both from a fundamental and technical point of view.
Catalysts for a price increase are:
- Further contract wins
- Breakout past the $0.5 resistance mark
Comment
Hello,Today trading breached the 50 cent mark and flew up to a high of 57 cents.
Since that point the price closed near the low at the end of the day.
This could signify a Spike High and a price reversal, although I doubt it due to support at the Moving Average at 44 cents.
Best to HOLD at this point and wait for some consolidation, if the price remains below 50 cents. If the price breaches 50 cents again tomorrow, then a BUY is in order, with potential new support line found at 50 cents depending on the close.
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