FuelCell Energy Inc (NASDAQ:FCEL) shares are facing a downward correction during Thursday’s midday session.
The Nasdaq is up 0.31% while the S&P 500 has gained 0.43%.
The stock is currently trading at $12.87, down 5.64% at the time of publication. This movement follows a volatile week for the hydrogen fuel cell sector.
• FuelCell Energy stock is showing notable weakness. What’s pressuring FCEL stock?
Profit Taking After 52-Week High
The retreat comes after a significant momentum run earlier this week. FuelCell Energy surged 48% from a Tuesday low of $9.76. By Wednesday, the stock hit a new 52-week high of $13.66. This pullback appears to be a cool-off period.
The Bloom Energy Halo Effect
The initial surge was driven by peer Bloom Energy Corp (NYSE:BE). Bloom reported blowout earnings and a landmark partnership with Oracle Corp (NYSE:ORCL).
The deal involves powering an AI data center campus in New Mexico. Oracle will deploy up to 2.45 gigawatt of fuel cell capacity. This massive win initially lifted the entire clean energy sector.
Technical Analysis
FuelCell Energy is trading near the top of its 52-week range of $3.58 and $13.66. The stock is trading 51.2% above its 20-day simple moving average (SMA) and 60.0% above its 100-day SMA.
The relative strength index (RSI), a momentum gauge, is 74.68.
Over the last 12 months, the stock has been up 213.17%. The golden cross back in October (50-day SMA moving above the 200-day SMA) supports the longer-term bullish structure, even if the near-term is overheated.
- Key Resistance: $13.50
- Key Support: $9
FCEL Stock Price Activity: FuelCell Energy shares were down 5.64% at $12.87 at the time of publication on Thursday, according to Benzinga Pro data.
Photo by T. Schneider via Shutterstock
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