Before I start, I want to make clear I am not a permabear. I've been long PLUG, FCEL, and BLDP at varying times of this bull run via commons and calls. They've been great. But this chart pattern has the look of a top. For candlestick nerds (like me) out there, this has the potential for a Dumpling Top. PLUG exploded 100%+ in six trading days (on a closing basis) and has since put in a bunch of relatively small candles. An attempt higher on 01/26 on lower volume unsurprisingly failed. The following day it gapped lower and closed on the lows on higher volume. In order to confirm a Dumpling Top, a gap down is required. And looking at how the market closed Friday and the way the crypto markets are trading currently, I wouldn't be surprised if we get that gap down on Monday.
This could certainly morph into a high tight flag setup, but I think the current conditions warrant caution. PLUG closed Friday below the 10-day EMA. I'm currently long UVXY, TWM, and PLUG puts. Good luck next week!
This could certainly morph into a high tight flag setup, but I think the current conditions warrant caution. PLUG closed Friday below the 10-day EMA. I'm currently long UVXY, TWM, and PLUG puts. Good luck next week!