The 200-day moving average could soon catapult the security higher
The shares of FuelCell Energy Inc (NASDAQ: FCEL) are down 6.8% at $9.05 at last check. While it is unclear what is sinking down the shares today, the security has been trending lower since hitting a Feb. 10, record high of $29.44. Traders shouldn't scoff at the energy stock just yet, though, as it still sports an impressive 363.8% year-over-year lead. What's more, the equity's latest pullback has placed it near a historically bullish trendline, which could catapult the stock towards higher levels in the coming weeks.
Specifically, FuelCell Energy stock just came within one standard deviation of its 200-day moving average, after spending over a week above this trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, three similar signals have occurred in the past three years. The security enjoyed a positive return one month later, averaging a whopping 49.2% gain. From its current perch, a move of similar magnitude would put FCEL over the $13.50 mark.
Analysts are still pessimistic towards FCEL, leaving ample room for upgrades moving forward. Of the 10 in question, seven carry a tepid "hold" rating, while the remaining three say "sell." A short squeeze could also fuel additional gains, as short interest currently makes up 11.8% of the stock's available float.