Next bull run or false breakout?
Updated
Last Friday Plug has broken the 4hour GMMA, which is a bullish sign. However, on a daily level, PLUG price has reached 50MA which could be a potential resistance. Also, it is now at the top of the recent downward resistance trend line which might face rejection too if it does not hold.
During the past few weeks, I have noticed that PLUG likes to surge before market and plunge when the market opens. Since PLUG has been a weak stock for so long, and its stock price has been very choppy since Nov 2023, will this break out the next bull run or a false breakout?
I guess I will have the answer on Monday, in which I will observe:
(1) whether the price stays above 4hr GMMA,
(2) whether it breaks through daily 50MA
(3) whether it breaks through the recent downward resistance trend line
During the past few weeks, I have noticed that PLUG likes to surge before market and plunge when the market opens. Since PLUG has been a weak stock for so long, and its stock price has been very choppy since Nov 2023, will this break out the next bull run or a false breakout?
I guess I will have the answer on Monday, in which I will observe:
(1) whether the price stays above 4hr GMMA,
(2) whether it breaks through daily 50MA
(3) whether it breaks through the recent downward resistance trend line
Trade closed manually
Turns out the breakout of the 4hr GMMA on Monday is a false breakout, as it is now closed under the 4hr GMMA again. The daily 50MA hold as a resistance perfectly.The stock price has also crossed below the 5min/15min GMMA which indicates that PLUG is currently quite bearish on both short and long term. I do not recommend to hold any position at this level unless you have your own plan.
Like I said PLUG has been a very weak stock for a long time, it is not surprise that PLUG is not able to meet any one of the condition that I mentioned earlier.
Apart from the 3 bullish conditions, a potential entry point for aggressive trader to consider is to wait till the stock price drop near to the bottom of the current uptrend line, which is somewhere around 3.05ish, to see if this uptrend is still valid.
Or if the stock price is bearish enough, it could retrace back to the previous low of 2.83 (or worst case 2.3 cos why not?) and one could see if there is any support by then.
Point to note: Try long ONLY when there is sign of support, and only open a small position to test the water since PLUG is highly volatile.
Trade active
Getting back in at 3.8
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