Understanding Technical Signals From FuelCell Energy, Inc. (FCEL)

FuelCell Energy, Inc. (NASDAQ:FCEL) gained 1.80% in yesterday’s session, going up from its prior closing price of $2.22 to $2.26, and has now recorded rally in 6 consecutive sessions. It is uncommon for a stock to keep rising for so many consecutive days so a temporary pullback is likely. The stock price went upward in 7 of the last 10 days and has generated 36.97% during the last two weeks. Trading activity decreased by -8.18 million shares, and in total, 5.40 M shares exchanged hands for about $12.21 million. It should be noted that increasing price and decreasing volume show lack of interest and this is a warning that something has fundamentally changed.

Inside FCEL’s Recent Trend

FuelCell Energy, Inc. (FCEL) has broken the wide and strong rising the short-term trend up and an even stronger rising rate is indicated. For any reaction back there will now be support on the roof on the current trend broken at $1.90, a point that may provide a 2nd chance needed to hit a runner. The next trend top is most likely to be exhibited at $2.24 will be the next possible trend-top level and thereby pose a resistance level which may not be broken at the first attempt.

FuelCell Energy, Inc. Technical Signals

FCEL has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $1.91 and $1.61. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Thursday September 28, 2017, which calls for additional surge until the stock forms a new pivot point high. There was a decrease in volume but the price rose. This is usually not interpreted as a good sign as traders widely believe falling volume should see declining stock. Investors should be watching the price action like a hawk in the coming sessions.

FuelCell Energy, Inc. (NASDAQ:FCEL) Support And Resistance Levels

FuelCell Energy, Inc. (FCEL) recorded volume accumulation so there will probably be a surplus of buyers at $2.22. It seems to be blessed by the accumulated volume as it meets no resistance above current level and favorable trading conditions will help the stock to show strong performance in the coming days.

FuelCell Energy, Inc. (FCEL) Risk Assessment

A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.15 between high and low, or 6.82%. The average volatility for the past week stood at 10.21%.

The stock is extremely overbought on RSI14 (88). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

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