Bullish – PLUG – $33.91
With equities consolidating and awaiting on further potential increases in stimulus, our overall outlook on the S&P 500 remains bullish as the momentum from fiscal and monetary policy, vaccine development, and optimism on the reopening of economies set a solid foundation for 2021. SPY is currently trading near all-time highs at the $370 level. While short-term pullbacks are a possibility, the $364 support level has remained intact so far. However, significant downside risks remain – a new, more infectious COVID strain continues to spread, and vaccine distrubtion has fallen behind estimates greatly.
PLUG Trade Idea:
PLUG is part of the technology sector (XLK) that has outperformed in 2020 and gained over 5% in the last month. With revenues expected to grow by more than 60% annually, we see solid potential in the renewalble energy space with revenue growth to back up the hype. PLUG’s 1M and 6M trends are both bullish and it has a very strong technical score of 10 (out of 10). Price has recently pulled back to provide an attractive risk/reward for a long opportunity.
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