PLUGMore Sellers than Buyers here. Looking for hard push down into the close. Distribution taking place.
PLUN trade ideas
Getting Short the Hottest Stock Out There: PLUGPlug Power Inc., an alternative energy technology provider, engages in the design, development, commercialization, and manufacture of fuel cell systems for the industrial off-road markets worldwide. I watch Institutional Order flow and trades from the Hedge Funds, Mutual Funds, and Retail Banks. Today, a trader bought 7,000 of the PLUG 4.11.2014. At www.keeneonthemarket.com we help traders help with the risk vs reward in trading. This means that a trader took about a $560,000 that PLUG sells off under $7. Lets breakdown my trade:
My Trade: I bought the PLUG 4.11.2014 Weekly 7 Puts for $.80
Risk: $80 per 1 lot
Reward: $620 per 1 lot
Breakeven: $6.20
Greeks of this Trade:
Delta: Short
Gamma: Long
Theta: Short
Vega: Long
Breakout coming soon.$7.23 is where a lot of %5 stops are going to be placed for short sellers today to call. Once that is breached, it should have no problem getting up to the .764 fib line ($7.77)ish.
Another interesting pattern taking shape here is resistance at $6.86, and a support line wedging up to meet it. To me this looks like sellers are losing Control.
Inverse H&SLooks to be working on the right shoulder while building a nice bottom. Clear entries and exits shown
Spinning Top at Bottom of Down TrendSpinning top after a significant down trend indicates sellers are losing interest and the bottom has formed. An up trend is to follow.
Bulls will be cautious and slowly enter over the next several days.
Huge volume support and divergence...Huge volume support and divergence...
Looks like short squeeze and
technical bounce is about to happen...
this is in exact similarity to Twitter right now.
As of today, March 25, 2:55pm,
It looks like short seller started closing their positions...
from the last 14 trading days there is still 1.05B shares to be traded pointing upward price trend....
OBV is just only about 33M shares to confirm the price trend reversal pointing upward....
while daily volume already confirmed the momentum....
this is interesting...
Sellers are starting to get pushed out.Around $5.50 is looking like a good price to think about buying as sellers are driven out of the market. Confirm with volume.
PLUGGap Fill possibly. Look left to be right. Suggest we crash right on through. Weak Bulls don't want to Hold.
Is it time to Plug in?Positives
1. Gap fill's after run up from positive news
2. Oversold Stoch and MACD at major gap turning to the upside.
4. Volume increased
5. Positive Press
6. Up 600% over 12 months.
7. HUGE Customer's signed up
8. Analysts are expecting sales growth of 68% through 2018
9. Big push for clean Energy... the cool stocks besides Bio and Marijuana
10. Positioned to dominate multiple fuel cell transportation markets, which have combined potential revenues of nearly $50 billion in the U.S. alone.
Negatives
1. Oct threat of de-listing from the Nasdaq
2. Underperformed when compared to that of the S&P 500 and the Electrical Equipment industry. (could be a long term positive)
3. Nearly gone bankrupt
4. Still not profitable — yet. Deficit of more than $820 million and has losses of about $20 million for 2013 (estimated). 5. The high costs relative to traditional batteries could ward off smaller would-be customers. That said, the overall cost savings are impressive and there is a long term ROI.
6. Costs are preventing exponential growth.
7. REduction in shareholder value with warrant offerings
Conclusion
I think we are at the feet of a sleeping giant... but as always when playing with giants there are risk. Bookings are up. Demand is up. Just had a pull back from a major run up. I think we will climb up till March 13th earnings...
I think now is the time to add to my starter position. Long since .56 with 2,700 shares.
$PLUG Rebound$PLUG - Made a wicked rebound off 1.50 will use that as major support, gonna follow the price action for the rest of the week... Volume and further PRs validating the companies future prospects to propel this higher...
Updated chart with notes. Likely will see profit taking going into next week unless the bulls continue to push this up. Super overbought and parabolic-like.
Updated daily chart.Notes on chart. Weekly still looks awesome though. Not a bad idea to take some profits and trail the rest.
