Don't Ignore This Chart!

PLUG in Your Batteries

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Earlier this week, I was preparing for my participation in a new episode of The Pitch. Unfortunately, that show got canceled as our host, Dave Keller, got sick with a cold.

One of the stocks I was going to pitch is PLUG. I ran into this company while working my way down from the sector RRG to the Technology groups RRG, where $DWCREE is showing up way up inside the leading quadrant at very high JdK RS-Momentum and RS-Ratio levels while still moving at an RRG-Heading around 90 with a long tail.

That type of rotation sparks my interest. ;)

This Renewable Energy Equipment Index is a bit of an odd one inside the tech sector. Due to the diversity, the classifications are not always clear. Some systems have some names in Technology and Semiconductors, but also have stocks showing up in the Industrials sector in different groups. Nevertheless, it is clear that this group is on the move.

The danger with this sort of move is whether it is too late to join, as a lot of the move has already taken place.

A quick look inside the group (against XLK) reveals that there are definitely a few tickers worth a closer look. One of them is PLUG.

Click the ticker to see the company description and you will understand the title of this article. ;)

PLUG has just moved into the leading quadrant from improving at a long tail, which suggests that there is enough power behind the move. RS-Momentum is still rising, but only gradually, though it seems to be able to maintain these levels.

The accompanying price chart shows a very clear break from a 6-month base after the stock dropped from the area around $70 back to $22.50.

Based on the price chart, there is very little resistance until $60-70, the topping area at the start of the year. In combination with a new solid support level of around $35, that makes for a good risk/reward ratio.

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Julius de Kempenaer
Senior Technical Analyst, StockCharts.com
CreatorRelative Rotation Graphs
FounderRRG Research
Host ofSector Spotlight

Please find my handles for social media channels under the Bio below.

Feedback, comments or questions are welcome at Juliusdk@stockcharts.com. I cannot promise to respond to each and every message, but I will certainly read them and, where reasonably possible, use the feedback and comments or answer questions.

To discuss RRG with me on S.C.A.N., tag me using the handle Julius_RRG.

RRG, Relative Rotation Graphs, JdK RS-Ratio, and JdK RS-Momentum are registered trademarks of RRG Research.

Julius de Kempenaer
About the author: is the creator of Relative Rotation Graphs™. This unique method to visualize relative strength within a universe of securities was first launched on Bloomberg professional services terminals in January of 2011 and was released on StockCharts.com in July of 2014. After graduating from the Dutch Royal Military Academy, Julius served in the Dutch Air Force in multiple officer ranks. He retired from the military as a captain in 1990 to enter the financial industry as a portfolio manager for Equity & Law (now part of AXA Investment Managers). Learn More
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