After plummeting from a high of $75 in January 2021, Plug Power stock (NASDAQ:PLUG) is now pushing away from what we consider a “make-or-break” point. This is the established support of $26, which the stock has tested severally since April last year.
Earlier in the month, the company reported a fourth-quarter loss of $0.33 per diluted share, narrower than a loss of $1.14 per share last year. Since then, the stock has been surging, taking the total gains in the last 30 days to more than 26%.
The gains make PLUG a stock worth exploring further, especially since it trades at less than half of the price from the previous high.
Plug Power is a narrow moat company with operations in developing hydrogen fuel systems technology. As a result, an uncertain profitability path and thin manufacturing margins have challenged its outlook.
Nonetheless, corporations have ramped up efforts to forge sustainability, with the environmental trends favoring PLUG. Recently, the company announced a Giga Factory in New York as it seeks to satisfy the need for future mobility solutions.
Without a doubt, PLUG is a viable stock given the on-demand niche it is operating. The recent financial results are already boosting PLUG above the $22 support.
PLUG emerging from $22 support
Source – TradingView
Technically, PLUG has held around the $22 support. The level coincided with oversold conditions in January, with the RSI at 33 on date 24th of the same month. What makes the oversold $22 a good area is that the level has been tested severally, with the stock rebounding before falling back.
Currently, PLUG is rising from the support, although it faces resistance from the 50-day and 100-day MA. Investors should consider buying the stock once the moving averages join.
Summary
PLUG is a buy at around or slightly above $22. Investors should wait to buy when the moving averages join support. The levels to target are $32 and $45 in the near term.
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