Whilst the main market saw some moderate weakness, the real entertainment was in Plug Power (PLUG), which opened higher, but saw a huge collapse in the afternoon, settling -41.9% @ $5.99. Near term outlook is messy, with earnings due this Thursday.
So...a new high of $11.72, but today's reversal was a classic bubble bursting in what was a parabolic rise.
PLUG holders had almost THREE hours of warning of trouble, via the opening black-fail candle on the hourly and daily chart.
As I often note, those black-fail candles are usually very often good early warnings of trouble. They don't always work out...but...I'd say 70/80% of the time..yes!
Day'1 down..what next?
The reversal around 12pm was very stark..and there can be no excuse for anyone being surprised at the severity of today's daily decline. There isn't any significant support until the 50 day MA..and that is still a considerable way lower in the upper $3s.
No doubt..some will wonder whether this stock is headed all the way back to the $1s..and that is indeed a very viable prospect, not least since the company doesn't make a profit.
*earnings are due Thursday (although I'm unclear as to what time this will be).