Plug Power stock price has rebounded and formed the highly bullish golden cross pattern on the daily chart. PLUG was trading at $1.70 on Friday, up by 150% from its lowest point this year. So, is PLUG a good company to buy today?
Plug Power stock price technical analysis
The daily chart shows that the PLUG stock price has been in a strong uptrend in the past few months. It initially bottomed at $0.6860 in May and has been on a slow uptrend since then.
A closer look shows that the stock has formed the highly bullish golden cross pattern, which happens when the 50-day and 200-day Weighted Moving Averages (WMA) cross each other. This is one of the most common bullish continuation patterns in technical analysis.
The Relative Strength Index (RSI) has rebounded and moved above the neutral point at 50. It has jumped to 58, the highest level since July 28 this year.
Therefore, technicals point to more gains, potentially to the key resistance level at $3.30, its highest point in January this year. Such a move will be a 95% jump from the current level. A drop below the 200-day moving average at $1.43 will invalidate the bullish PLUG stock price forecast.
Read more: Why Plug Power stock isn’t plugged into my portfolio
PLUG is making progress
Plug Power stock price has done well as concerns about the Donald Trump administration’s war on clean energy companies wane.
For example, a recent guideline pushed solar stocks higher as they were less severe than expected.
Plug Power also published strong financial results, helped by the sale of its equipment. Its second-quarter revenue rose to $173.9 million, up from $143 million in the same period last year.
The six-month revenue rose to $307 million, up from the $263 million it made in the first half of last year.
Most importantly, its cost management structure helped it to narrow its losses. It had a net loss of $228 million in the second quarter, an improvement from the previous $262 million. The first half loss also narrowed to $425 million.
Analysts are hoping that the company’s progress will continue in the coming months. The average revenue estimate is that it will make $183 million in the third quarter, a 5.70% increase from the $173 million it made last year.
Analysts also see the annual revenue rising to $709 million this year, followed by $982 million in 2026. Additionally, the earnings per share (EPS) is expected to move from a $1.46 loss per share to $0.62, this year, followed by $3 cents.
These estimates mean that the company’s turnaround efforts are working even as the hydrogen energy sector remain under intense pressure.
However, the company still faces significant challenges, including its ongoing cash burn and declining order intake. The recent results showed that its cash and equivalents dropped to $140 million from $205 million in the previous quarter. Its restricted cash dropped slightly to $195 million.
These numbers mean that the company may be forced to raise capital to fund its operations.
Read more: Insiders are buying Plug Power stock: is a short-squeeze coming?
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