- FuelCell Energy (FCEL) stock is halted to recharge on Wednesday.
- FCEL stocks have been loaded, so it’s no surprise that this has slowed down.
- The FCEL action is always well followed on social networks with climate change in the headlines.
Shares of FuelCell Energy (FCEL) paused to recharge on Wednesday as the stock barely changed, closing the session at $ 9.48 for a small gain of 0.5%. The stock has naturally benefited from the increased attention given to clean energy stocks since in the last fortnight we have had the G20 meeting in Rome on climate change and now the COP26 summit in Glasgow. So there is no shortage of headlines for clean energy companies.
Despite all of this, BP has managed to show spectacular results and launch its massive dividend and buyback program, showing that things are not yet over for old-fashioned energy. FuelCell is however firmly in the right books as it is involved in the production of clean energy from the capture of hydrogen. This means that it produces energy without atmospheric side effects associated with the combustion of fossil fuels.
FuelCell Energy Chart (FCEL), 15 minutes
We can see on the FCEL chart above the return generated by an investment in the name over the past two weeks. An impressive return of almost 30%, despite a decline of 10%.
FuelCell Energy (FCEL) stock market news
There isn’t a lot of recent news behind this one. Yes, there was an extension of an agreement with ExxonMobil (XOM), but it was an extension of an agreement already in situ. It was nevertheless aggressively disseminated on social networks.
On the contrary, there has been a growing list of more generally favorable sectoral conditions in effect. President Biden is keen on clean energy, and his stimulus bill will include a clean energy provision if it manages to outpace some skeptical senators. Fossil fuel producing countries are particularly skeptical, which have large tax revenues from oil exploration that need to be replaced. The weight of public opinion should eventually pass the bill, perhaps with a few watered down elements. Countries made impressive commitments at the COP26 summit this week that will further benefit the clean energy sector. Climate change is the hot sector, and the green money is waiting to invest in the potential winners in the next step.
FuelCell Inventory Forecast (FCEL)
The FCEL table gives us a clearer picture of the perfect setup. A combination of the right sector, the tailwinds mentioned above and a technical setup that was waiting for a catalyst. FuelCell was caught in the original binge in January and calmed down.
This reduced volatility led to the formation of a triangle. We then formed a base which prepared us for the break test. The first test of $ 8.30 failed but the retracement was at a low which makes it bullish. We also had a bullish divergence from the Relative Strength Index (RSI). The second breakout worked perfectly, and now we find FCEL consolidating after the breakout move. To gain further strength, FCEL stocks need to hold above $ 8.30 and really above $ 8.93, the first breakout failure.
This will give the buyers time to regroup and push the FCEL stock higher. Below $ 8.30 we returned to neutral and would close our positions. On the upside targets will be the 200-day moving average at $ 10.60 and then the June high at $ 12.55.
1 day FCEL chart