FuelCell Energy Stock: Breaking All Dams?


FIt couldn’t be better for FuelCell Energy shareholders. While the FuelCell share was still trading at just under $ 3 in mid-October, it is already paying $ 8.54. After the price increase of 54% yesterday, European trading is up another 20%. Where is the end of the rocket-like course rally?

Worrying developments

Two months ago, JP Morgan had given FuelCell Energy a “buy” rating. The analysts had seen the price target for the fall of 2021 – twelve months later – at $ 3 due to the possible imminent leap into profitability and the backlog of orders, which could be processed profitably. Now less than two months have passed and the price of FuelCell is 8.54 Dolar. An exaggeration?

China fantasy heats up the mood

The Chinese government presented its strategy for vehicles with renewable forms of energy on November 2nd. According to the plan, the renewable vehicle industry should achieve breakthrough success in batteries, propulsion motors, vehicle operating systems and more by 2025, with new vehicle sales reaching 20 percent of total sales.

News spreads on and on

The fantasy for the US company FuelCell Energy to be able to get involved in the Chinese market is apparently reason enough for some investors to enter at ever higher prices. This could also reflect the hope that a US administration under Joe Biden will pursue a course that is more oriented towards cooperation with its Chinese partners than the administration under Donald Trump did. For example, it blocked the short video app TikTok, the network equipment supplier Huawei and imposed punitive tariffs against the entire Chinese economy. To date, it is not clear whether the Chinese side will develop their own hydrogen companies. It is not clear whether FuelCell Energy will benefit from it or rather suffer from protectionist measures. That is a potential risk for investors.

CNBC’s Jim Cramer talks about hydrogen

The hydrogen hype has long since reached the mainstream media. The hedge fund manager and CNBC presenter Jim Cramer also described hydrogen vehicles as more promising and more efficient than electric vehicles this week. This makes the subject of hydrogen and fuel cells known to a larger number of investors. This can help to accelerate trends even further.

What is the chart technique for the FuelCell share?

Technically, in the $ 7.65 to $ 9.48 range, we can speak of a full fan-out from the 123 bottom that formed in FuelCell stock from October 5th to November 13th. This area is not considered a hard upper limit for the share price, but from a chart technical point of view, one can speak of an overbought area. Smaller time levels – such as the hourly chart – could now be observed in order to be able to identify any trend reversals at an early stage.

Do you have any questions about this chart analysis? Learn more about 123 trending patterns! Every trading day between 9 a.m. and 10 a.m. there is a broadcast on our livestream channel CMC TV on YouTube that is entirely dedicated to the 123 samples. There you can ask your questions via the YouTube chat. You can also find all recordings of old programs on our YouTube channel.

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