8/11/2022
OPEC is now calling for lower demand-growth for the rest of the year and legislation is changing up the face of energy…
Does this mean the oil trade is over for energy bulls?
For now, maybe…
But if a certain sector doesn’t fit your trading style, sometimes you have to improvise…
…kind of like in Revenge of the Nerds when Lamar altered the javelin back in ’84:
And alternative fuels, solar, and EVs have been on the move ever since…
Up above is the daily chart since last May…
As you can tell, the share price has been volatile with no real definitive direction.
I believe this is about to change…
Lots of congestion… lots of sideways trading… and a break of the “downtrend” (purple dotted line).
There are a number of channels at play here, but the real Resistance level for bulls to watch is marked with the red arrow.
Let’s call it $36.00.
Be careful on this though…
All too often I see a level briefly break and folks rush in, jumping the gun only to get cleared out on a reversal.
This level needs to be cleared and established as Support…
If you look at the vertical green bar labeled “Strategy Entry”, my long call signal fired off after the share price and moving averages stacked to the upside.
This is built into Chris Hood’s MA Trading Tool.
Below on the lower chart, the Squeeze Trading Tool 1.2A shows the Stochastic green and pointing higher with a single early warning signal (red dot).
PLUG may be stretching, but there’s nothing bearish here…
Below on the Squeeze 4-Pack v8, we’ve got all four lookback periods bullish with the lower time frames flipping back to bright green, so an extended cycle higher could be in the works.
(Click here to see these indicators at work.)
What’s the word on Volume?
The green arrow is pointing to the buyers stepping in on above average Volume, despite Short Volume jumping close to 500%…
That’s bullish.
I’d expect a move up followed by some congestion, but I say blue skies ahead over $36.00…
Keep moving,
(Disclosure: I hold no position in PLUG but intend to initiate a position in the next 30 days.)
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