PLUG at critical level - time to break through
PLUG has been in an aggressive downward move this year.
The chart shows two failed attempts to get through the $29.60 resistance level. It is now attempting a 3rd and I'm bullish. Why?
The price action shows the aggressive downward move, a breakout from this move around $26.30 and a slight rotation of the angles indicating we may have found a bottom and more buyers are coming in.
But the ascending triangle is why I'm hopeful for a rotation up, this is a bullish pattern and it follows the evening out of the slope down.
The 29.60 level is critical because it is not only a stubborn resistance, but it now has the 200 EMA sitting on top of it which can also act as resistance. Double Whamy.
Because this level is so stubborn I'll be placing a stop buy order on the other side of this, with a tight stop in case of a false break and a rejection back lower.
You'll see similar patterns in Bloom Energy, Canadian Solar and some of the other green energy stocks, which suggests a category rotation giving me more faith in the move.
Suggest picking which one to trade carefully and not picking all of them without looking at correlation since they're all behaving in very similar ways.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.