Plug Power stock price has suffered a harsh reversal in the past few weeks, moving from a high of $4.58 in October to $2.50 today. This performance mirrored the pullback in the US stock market, where top indices like the Nasdaq 100 and S&P 500 dropped. So, will the stock rise or fall after its earnings report?
Plus Power stock price technical analysis
The daily timeframe chart shows that the PLUG stock price has crashed in the past few weeks, falling from a high of $4.58 in the first week of October to $2.50 today.
It moved below the important support level at $3.30, its highest level in January this year, confirming the bearish outlook.
The stock is hovering at the 50-day Exponential Moving Average (EMA), and is slightly above the 100-day MA.
On the positive side, the decline is part of the cup-and-handle pattern, which is a common continuation sign. It has also formed a bullish engulfing candle, where a big bullish candle fully covers a small bearish one.
Therefore, there is a likelihood that the stock will bounce back and possibly hit the important resistance level at $3.30. A move above that level will point to more gains, potentially to the year-to-date high of $4.58.
On the flip side, a drop below the 100-day moving average at $1.42 will invalidate the bullish Plug Power stock price outlook.
PLUG stock chart | Source: TradingView
PLUG earnings ahead
The Plug Power stock price has reacted to some notable developments in the past few months. For example, it has started to install the 5 MW electrolyzer product for H2 Hollandia, which will become the biggest green hydrogen project in the Netherlands.
The company also delivered 44.5 metric tons of hydrogen for H2CAST in the Netherlands and signed a contract for 35 more tons.
Most importantly, the company successfully raised $370 million with a single investor, who then received 31 million shares with a strike price of $7.75 and an expiry on March 20, 2028. The new warrants give Plug Power the ability to raise $1.4 billion over time.
The next important catalyst for the Plug Power stock will be its third-quarter earnings, which will come out on November 10 after the market closes.
Data compiled by Yahoo Finance shows that analysts expect the results to show that the company’s revenue rose by 1.34% to $176 million, while its earnings-per-share will improve to -$0.13 from the previous -$0.24.
For the year, the company’s results are expected to be $707 million, up by 12.7% from what it made last year. It will then make $880 million in 2026.
A potential reason why the Plug Power stock price may surge is that it is one of the most shorted companies in the country, with a short interest of 28%. Recently, some highly shore
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