More Upside in Store for Plug Power Stock, Signal Says

The equity is already up over 385% year-over-year

Digital Content Manager
Oct 26, 2020 at 1:16 PM
facebook twitter linkedin

The shares of Plug Power Inc (NASDAQ:PLUG) are down 4.2% at $14.40 at last check. And while the electrical company has cooled off from its Oct. 8, 12-year-high of $19.02, the equity still sports a jaw-dropping 385% year-over-year lead. What's more, the stock's latest pullback has it near a historically bullish trendline, which could push PLUG even higher in the coming weeks. 

More specifically, Plug Power stock just came within one standard deviation of its 40-day moving average, after spending a majority of the past several months above this trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, four similar signals have occurred during the past three years. Three-quarters of the time, PLUG enjoyed positive returns one month after each signal, averaging a 43.6% gain. From the stock's current perch, a move of similar magnitude would put PLUG just above the $20 mark -- at a fresh record peak.

PLUG 40 Day

A short squeeze could create even more tailwinds for the security. Short interest rose 14% during the past two reporting periods, and the 61.91 million shares now make up a whopping 26.9% of Plug Power stock's available float. In other words, it would take just over two days to buy back these bearish bets, at PLUG's average pace of daily trading.

An unwinding of pessimism in the options pits could also send the equity higher. This is per the security's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 76th percentile of its annual range. In simpler terms, this suggests a healthier-than-usual appetite for bearish bets of late. 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners