FuelCell [NASDAQ: FCEL] might be one of the most exciting stocks to watch today. It is up by 11.575% in pre-market trading. This is a follow up to yesterday’s trading when it gained by 37.19%, making it one of the biggest gainers in the week. This stock has been bullish since it struck a deal with Drax Power Station in the U.K.
Through this deal, FuelCell will help Drax cut on carbon emissions by enabling it conduct a front end engineering design study on carbonate fuel cells. This is in line with Drax’s goal to become be emissions negative in the next decade. This deal goes to show that FuelCell’s customer numbers in the carbon capture market are growing. One of its big partners is energy giant, Exxon Mobile, which has been their partner for the last 4-years. The growing demand for clean energy in Europe could further support clean energy companies such as FuelCell.
It could turn the tide for a company that has lost roughly 98% of its value in the last 12-months. From a look at the charts, FuelCell has been in a bearish trend for quite sometime. This could be an indicator that bears are in control, with the next short-term support level at $0.177. However, if its pre-market momentum pushes it above yesterday’s high of $0.308 and or if it can close green on the day above $0.242, it would be an indicator to a possible bullish reversal.
Failure to break this resistance could see a continuation of the bearish trend. There are several factors that could play a role in reinforcing the bearish trend. The biggest one is the selloff in global markets after data on factory activity showed weakness. It is an indicator that the global economy is weakening following the sustained trade war, and other uncertainties. This uncertainty is also reflected in the declining U.S bond yields, and could impact on stock markets performance in the day.