Chart of the Day: Bloom Energy Hasn't Quite Bloomed Yet
Don't lose sight of this new EPS Diplomat name, as now could be the time to plant seeds for future profits.
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We added Bloom Energy (BE) to our portfolio via the EPS Diplomats this week in a move that looks to strengthen our portfolio with very strong earnings ideas.
The stock really made some nice progress over the past year or so, with higher-highs and higher-lows in the chart, indicative of an uptrend. Notice the candles have mostly been blue or teal over the last eight months, a strong bullish condition. Currently that is not the case as Bloom in in the midst of a corrective phase that we don't expect to last for too much longer.
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The technical indicators are not bullish and support maybe even a bit more downside. But even that is limited to good support in the $120 area. The moving average convergence divergence as seen in the second pane is bearish. Also, you can see in the fourth pane that the trend in the Average Directional Index is not strong but is starting to gather steam, while momentum is starting to rise with stochastics.
All in all, this recent pullback presents a nice entry point in the stock before we hear about their next quarter, which should come in early May.
As a member of the EPS Diplomats Bloom Energy does not have a rating.
At the time of publication TheStreet Pro was long BE.
