Signal Says a Comeback Could Be in Store for FuelCell Stock

A short squeeze would create additional tailwinds for the security

Digital Content Manager
May 3, 2021 at 3:15 PM
facebook twitter linkedin

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.

FCEL 200 Day

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.


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!