Plug power stock: MACD gave a sell signal, what’s next for PLUG?

• The Plug Power stock: MACD gave a sell signal to PLUG, See what the supports and resistances are saying
• The company’s gross profit is negative, what is the impact on the price?
• PLUG is trading at its 50 EMA, will it bounce off or cross over?

About Plug Power Inc.

Plug Power, founded in 1997 is a leading provider of hydrogen fuel cell solutions, The advanced technology of the company provides power to electric motors with hydrogen fuel cells. The company aims to address climate change while meeting sustainability goals with the help of over 3.5k employees. Plug Power is listed on NASDAQ with the ticker ‘PLUG’ and is led by Andrew J. Marsh, who is the CEO. 

Some financials and Key performance ratios

• The revenue of PLUG for the last quarter, March 2023 was reported as $210M, increased by 49.4% YOY
• The company is burning on the Cost of goods, with  the gross profit recorded as $-69M,
• The post-tax net profit came off as $-207 Bn in the last quarter.

• The gross margin is -29.6%
• The net profit margin is -100.4%

• Pe ratio is -9.5, the reason is the negative  net profit
• The company is low on debt with the Debt to equity ratio of 0.13
• The return on equity is also negative with a value of -18.71%

PLUGStock Previous Price Action and Forecasting

PLUG‘s Previous Price Action

The price began to rise after a dip in December of last year. It went from $11.4 to a high of $18.8 in February 2023. After that, it dropped to $7.44 in May of 2023. However, the bulls in the area have since started to reject the bears, and the stock has shown a slight uptrend momentum with the price currently at the level of $11.7

Supports and resistances: Currently there is a support made on the level where the resistance was broken, at the price level of $10.8, however, the price currently is at the level of the support zone, and it has seen to have bounced off. 

The second and more profound support is seen at the level of $19.14 with a lot of volume to cushion the bulls.

The resistance levels will be at $14.58 for the immediate one, it has been broken support converted resistance, and 2nd one at $16.72 

Indicators

MACD

The signal line in the MACD chart has crossed the MACD line and has come below, this is indicating a short-term fall.

RSI

The RSI came down after touching the level of 74 points in the mid of July 2023 and It is currently at the level of 51 points which is indicating a sideways market, 

EMAs

The price is currently over the 50 EMA with a little difference in between, as the 50 EMA stands at $11.03, if the price took support of it then an uptrend can be seen. However, the 200 EMA is at $13.18 which is well above the current market price.

The prediction will stand with the MACD being one of the leading indicators, it is showing a bearish trend in the short term, as well as the 50 EMA being near and getting close to the market price is seen to confirm the MACD indicator. Although we will still have to look for support 1 to break and confirm the downtrend.If the price bounces off the support it can move toward its first resistance of $14

Conclusion

The Plug Power INC. company was founded in 1997, engaged in the business of hydrogen fuel cell solutions, with an employee size of over 3.5k, the company is listed on NASDAQ with the Ticker of PLUG.

The company reported a revenue of $210M and is burning on a gross level with a negative gross profit. The stock price is seen in a slight uptrend with Indicators showing a bearish market in the short term. 

Technicals

Support: $10.87, $9.14

Resistance: $16.7, $14.58

RSI: 51.24

50 EMA: $11.03

200 EMA:$13.18

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.