2023-06-13 08:23:00 ET
Plug Power ( NASDAQ: PLUG ) stock price has rebounded in the past two months, helped by the rally in technology stocks. The shares have soared to the highest level since April 5th of this year. During this period, the stock has jumped by about 40% from the lowest level this year. It remained sharply below last year’s high of $31.92.
Is PLUG a good hydrogen stock to buy?
Plug Power is a major company in the hydrogen energy industry. The company provides an end-to-end green hydrogen ecosystem that is used across numerous industries. Its products make it possible to produce, store, handle, transport, and dispense liquid green hydrogen. According to its 10k , Plug Power has already deployed over 60k fuel cell systems for forklifts and is about 180 fueling stations.
Plug Power hopes that it will become the biggest player in the industry if it picks up in the future. Some analysts believe that the industry will do well as the energy transition continues. For example, Europe believes that it will manufacture over 70 million tons of green hydrogen. A study by Predence Research shows that the market for green hydrogen will be over $331 billion in 2032, up from 2022’s $4 billion.
Watch here: https://www.youtube.com/embed/uePOmVQasTs?feature=oembedSome, however, believe that green hydrogen is highly expensive to produce and transport. Production of green hydrogen requires substantial amounts of energy. And in most cases, because wind does not always blow and the sun does not always shine, production will need fossil fuels. Hydrogen is also highly expensive to use than other energy sources.
Plug Power stock price jumped after the company’s CEO said that its revenue will be higher than expected. He said that its Rochester gigafactory will:
“Witness firsthand that we are not only selling and deploying tangible products but have also scaled up operations, which supports our near-term revenue goals of $1.4 billion in 2023 and our long-term target of achieving annual sales of $20 billion by 2030.”
Plug Power stock price forecast
So, is it safe to buy Plug Power stock ? In April, I wrote that the PLUG share price would plunge to about $10. This forecast was accurate as the shares dropped to $7.42. Recently, however, the stock has jumped by over 40% and is now sitting at the highest level since April.
On the daily chart, the stock is approaching the important resistance point at $11.57, the lowest point in January this year. The shares have moved above the 25-day and 50-day volume-weighted moving averages (VWMA). The two averages are about to form a bullish crossover.
Therefore, I believe that the shares will continue rising as buyers target the key resistance at $11.57. A move above this level will signal that there are more buyers, which could push it to the next resistance is at $12.68.
However, failure to move above this level could mean that this a break-and-retest pattern, which will see it continue falling.
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