Benzinga - FuelCell Energy, Inc (NASDAQ: FCEL) was skyrocketing up over 18% higher at one point on Monday, confirming a new uptrend after the long-term downtrend in which stock has been trading since Feb. 3.
The massive surge came after FuelCell announced that it received an order from Exxon Mobil Corporation (NYSE: XOM) for equipment and modular support to demonstrate its carbon capture capabilities at an Exxon facility.
Although Exxon hasn’t yet made the decision to invest in FuelCell’s technology, Jason Few, president and CEO of FuelCell Energy, said the full-scale prototype will prove that its “carbon capture solution is the only solution that can capture carbon while producing electricity and hydrogen at the same time.
“We believe that this technology will address one of the largest environmental challenges of today, CO2 emissions from industrial and commercial exhaust streams and power generation,” Few said in a press release.
FuelCell has been heavily beaten down, declining 53% since the beginning of February and about 93% since reaching an all-time high on Feb. 10, 2021.
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The FuelCell Chart: FuelCell negated its downtrend on Friday when the stock printed a higher low at the $1.82 mark. On Monday, when FuelCell surged higher, it confirmed a new uptrend by printing a higher high. When FuelCell flew north, it rejected the 21-day exponential moving average (EMA) but was holding above the eight-day EMA, which is a bullish sign.
- If FuelCell closes the trading day with a significant upper wick, the stock will print a shooting star candlestick, which could indicate the next local top has occurred and FuelCell will trade lower on Tuesday. The second most likely scenario is that FuelCell forms an inside bar pattern to consolidate, which would lean bullish for continuation later in the week.
- If FuelCell suffers big bearish volume coming in to drop the stock down under the low of $1.81, the uptrend will be negated and a downtrend could be on the horizon. If that happens, the stock could be in danger of plunging to a new all-time low.
- FuelCell has resistance above at $2.32 and $2.61 and support below at $2 and $1.69.
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