As the world switches from combustion engines to electric powered modes of transportation, investors and traders are beginning to focus on the companies that produce and manufacture supplies for this market.
Plug Power Inc (NASDAQ: PLUG) and Luminar Technologies Inc (NASDAQ: LAZR) provide systems used in electric vehicles, while Gratomic Inc (OTC: CBULF), through its partnership with Forge Nano, will provide high purity vein graphite to the EV supply chain.
All three stocks look ready for a bullish move going into the week.
The Plug Power Chart: Plug Power, a hydrogen fuel cell system developer, looks to have found a bottom on April 21 following a steep 68% sell off after making an all-time high of $75. Since its slight rebound, Plug Power has spent the past seven trading days battling resistance at $28.80 and on Friday closed just underneath it.
Plug Power’s stock closed above the eight-day exponential moving average (EMA) but is still trading below the 21-day EMA, which shows bullish indecision. The stock rejected the 200-day simple moving average (SMA) on Friday, showing overall sentiment is still slightly bearish, but declining bear volume could indicate the stock is running out of sellers. This could push Plug Power up over the 200-day SMA if bullish volume comes in, which would then switch the overall sentiment back to the bulls.
Bulls want to see Plug Power’s stock close over resistance at $28.80 and continue northward to regain the 200-day SMA. If the stock can regain those levels, it has room to move up to fill the overhead gap at the $40 mark.
Bears want to see Plug Power’s stock continue to reject its overhead resistance, which could see it back-test support near the $24 level. If it isn’t able to hold $24, it could revisit $14 before finding another level of support.
The Luminar Chart: Luminar, an autonomous vehicle sensor and software company, found a bottom at $16.05 and bounced 63% before entering into consolidation. The bounce followed by consolidation created a bull flag pattern under resistance at $26.05, and, if that pattern is recognized, the stock looks set for bullish continuation.
Luminar is trading above the eight-day and 21-day EMAs, and on Thursday the eight-day EMA crossed above the 21-day EMA, both which are bullish indicators.
Bulls want to see Luminar’s stock react to the bull flag and break up over resistance near $26. If the stock can turn that level into support, it has room to move towards $30.48.
Bears want to see the bull flag pattern negated and for Luminar’s stock to break below support at $22.18. If this happens, the stock could revisit $16.05 before finding another support level.
The Gratomic Chart: Gratomic, like Luminar, bounced and consolidated in a bull flag pattern after a three-day sell off caused Gratomic’s stock to lose almost 50% of its value. On Friday the stock closed just under resistance at $1.06, and Gratomic has seen decreasing volume into a tightening pattern. This indicates big volume is likely to come into the stock within the coming days.
Gratomic is pinned between the eight-day and 21-day EMAs but well above the 200-day SMA which indicates sentiment in the stock is bullish.
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Bulls want to see large bull volume enter Gratomic’s stock to break it upwards from the bull flag pattern and over resistance at $1.06. If it can regain that level of support, it has room to move up towards $1.20 before meeting another resistance level.
Bears want to see the bull flag pattern negated and for large bull volume to enter the stock to drop it back down towards the 90-cent mark. If the stock is unable to hold that level of support, it could retest the 75-cent mark.
PLUG, LAZR and CBULF Price Action: Plug Power closed Friday’s session at $28.51. Shares of Luminar closed at $22.75 and Gratomic’s stock closed at $1.05.
Photo courtesy of Plug Power.
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