Plug Power (PLUG)

Company

"Plug Power Inc. designs and develops on-site energy systems based on proton exchange membrane fuel cells. Plug Power's strategic partners include GE Fuel Cell Systems, DTE Energy Technologies, Vaillant GmbH, Honda R&D Co., Ltd., Engelhard Corporation and PEMEAS GmbH. The Company's headquarters are located in Latham, N.Y., with offices in Washington, D.C., and The Netherlands." (company website)

Buy

2-Mar-05. PLUG has been trending generally downward since November, but the trend seems to have been broken in February (see sidebar). Now over $7, the November peak has been surpassed.

There is a lot of price momentum (PPO) and the trend is strengthening (ADX). Money flow into PLUG is strengthening as well. Both moving averages have reversed their downward slope, and the 50-day average will soon cross above the 200-day average again. The cautionary note is that PLUG is overbought (StochRSI), so it's not certain how much longer the price can rise before a pullback.

Sell

6-Apr-05. I should have listened to myself: "PLUG has been trending generally downward..."

I've held onto PLUG, hoping that the downward slide would stop at the 50-day moving average, and for a couple of days that appeared to be the case. Unfortunately, PLUG has now fallen four consecutive days and continues to lose strength. Price momentum (PPO) doesn't seem to want to stop falling any time soon, and relative strength is slipping as well (RSI). It just seemed best to cut my losses.