BLOOM ENERGY CORPORATIONBE:1W
Tradingview Description: Bloom Energy Corp. engages in the manufacture and installation of a solid oxide fuel-cell based power generation platform. Its product, Bloom Energy Server, converts standard low-pressure natural gas or biogas into electricity through an electrochemical process without combustion. The company was founded by K. R. Sridhar, John Finn, Jim McElroy, Matthias Gottmann, and Dien Nguyen on January 18, 2001, and is headquartered in San Jose, CA. (The above description is from the Tradingview Website)
My Analysis: Using the 1 week time frame (each bar equals 1 week of time) and showing 5 years of price history, I see a bullish descending wedge pattern that could turn up over the course of the next year.
A recent earnings miss has put price at multiyear lows and if I want to get long this stock this might not be a bad time. Despite this earnings miss NYSE:BE just posted its first positive earnings in the last 7 quarters, albeit below analyst estimates which is why its price recently took a nose dive.
Given the bullish price to RSI divergence (bottom indicator), whereby price is printing lower lows and the RSI is printing higher lows, we can take this as an indication of downside selling momentum waning to an exhaustion point and price beginning to find its 'local bottom' before potentially turning up.
That being said, I remain cautious about looking at this stock as an investment and I see it as more of a trade over the course of 6 months to a year. The most recent 'bearish outside bar' that 'fully engulfs' the prior bar is also of concern in the near term and could portend one more price drop before fully bottoming out.
Over the past 5 years price is down -2.08% which means that an investor has lost a little more than 2% on their capital appreciation over the course of the last 5 years if they held this stock the entire time.
Out of the19 Tradingview analysts reviewing the stock over the last 90 days, the stock is rated as a 'buy" with an average price target 71% above its current price point with a timeline to hit that level at some point over the course of the next year.
I love it as an extended 'swing trade', however natural gas is a fickle market within the energy sector and highly unpredictable so I would be very careful with the duration of time I held the stock and size my position accordingly. If I were up 40% or more I would set a 'stop loss' to preserve my gains on this particular stock given the volatility in the underlying commodity that drives the stock price which seems to be highly pegged to the natural gas market along with the broader clean energy sector.
Lower price target: 14.21
Upper price target: 17.90
Lower support begins at 4.27.
