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FuelCell Energy, Inc. (FCEL)

FuelCell Energy stock forecast: buy or sell

Close on Sep 25th, 2020
$2.29 0.00%
3 months performance
0.06%
Published: September 27th, 2020 - 20:21

FuelCell Energy stock outlook

  • FuelCell Energy closed on Friday at $2.29 (0.44%) prior to reporting financial results next January 2021 at 13:00
  • FuelCell Energy released its earnings report
  • FuelCell Energy, Inc., together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed power generation.

Disclaimer:
The opinions written in this post are personal and not recommendations for you to buy or sell shares. The author of this text does not have an understanding of the specific conditions of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are expressed for learning purposes only

FuelCell Energy stock charts

Should I buy FuelCell Energy stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is FCEL stock a buy?

In the current situation of FuelCell Energy there is not any eligible buy setup. This doesn't mean FCEL will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell FuelCell Energy stock?

Do you know when is it time to sell FuelCell Energy?. Similarly to when we have to buy shares, deciding when is the best time to sell is not a whimsical decision, and we must use our own trading style. Our trading system selects very simple setups to guide us on when is the best time to sell our shares. Be aware that these setups should not be used for shorting FuelCell Energy stock

A guiding principle is that you must never keep a trade that produces greater losses than those expected upon the buy. The timing to sell your stock always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell FuelCell Energy stock?

In the current situation of FuelCell Energy there is not any eligible sell setup, so FuelCell Energy stock holders with operations in green can keep their positions

Analysts' recommendations to buy or sell FuelCell Energy stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, just one brokerage rating was published for FuelCell Energy

FuelCell Energy ratings

Brokerage firmRating
Sep 10th, 2020
Oppenheimer Neutral

Technical analysis

SMAs overview

Moving averages are tools for traders to detect momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

FCEL SMAs chart

Supports and resistances

Technical analysts use supports and resistances as a way to identify price points in the stock price action that may behave as barriers, preventing the price of shares to move in certain direction. A support level is a level where the price may find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it is likely to continue descending until finding another support level. In contrast, resistances are where the price tends to find opposition as it rises. In the same way, the price is more likely to "bounce off" at this level, and if it finally breaches this level, it will rise easily until it finds the next resistance

The current resistance levels are:

  • R1: $2.40 (4.8% above)
  • R2: $2.42 (5.68% above)
  • R3: $2.88 (25.76% above)
  • The current supports are:

  • S1: $2.16 (-5.68% below)
  • S2: $2.10 (-8.3% below)
  • S3: $2.03 (-11.35% below)
  • Bollinger bands

    This is an indicator that was developed in the 1980s by John Bollinger. It is made up of three lines that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    FCEL RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. It is intended to map the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in the late 1970s

    When the Relative Strength Indicator stays for so long below 70 and above 30, without showing moments of overbought and oversold, the indicator becomes of little use, and we currently are in such a case.

    FCEL RSI chart

    Earnings and financials

    , FuelCell Energy had the quarterly shareholders event and posted the Q3 report.

    In comparison, the EPS for the same quarter last year was $-0.18, so reported EPS is a gain of 100%. Looking at turnover, figures skyrocketed a 104.99% compared to $9.2M same quarter a year ago.

    FuelCell Energy is posting Q4 earnings report next January 2021. Expected per-share earnings of %s for this quarter is $-0.06. If you hold or you are looking to buy FuelCell Energy stock, you must be careful as the earnings reporting day usually has a very high volatility, and price can gap up or down with unsually low liquidity and not honouring your buy or stop-loss orders. You can find more information about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.fuelcellenergy.com.

    FCEL revenues and profits chart