Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Shares of Ceres Power Holdings plc (LON: CWR) have formed a triple bottom pattern on the daily chart as investment analysts at leading investment banks reiterate their bullish stance on the company.
Analysts at Citigroup recently issued a research note on European hydrogen electrolyser companies saying that the stocks have bottomed after enduring a significant pullback of up to 40% from their January highs.
Ceres Power shares have fallen 41.7% from their January highs and could be ready to rally higher if the triple bottom pattern holds over the coming days, supporting a rally. First, however, the stock needs to move higher from current levels to validate the pattern.
Citi analysts noted that hydrogen companies had been affected by sectoral outflows as investors shifted funds from last year’s high performing stocks to value stocks.
Other factors behind the companies falling share price include profit-taking from investors who booked significant returns from last years rally.
The technical picture supports the analysts’ fundamental reasons. As a result, investors looking for exposure to the sector could buy at current prices as the sector prepares to revere course and rally higher.
I have covered Ceres Power shares in the past, where I discussed its fundamentals in detail. You can find the articles here and here.
The current setup provides a tremendous trade opportunity for investors and traders alike. As always, use a stop-loss order on your trades to limit your losses if the price keeps falling.
*This is not investment advice. The author is simply sharing his opinion of a company’s share price.
Ceres Power share price.
Ceres Power shares have formed a triple bottom pattern on the daily chart. Can they bounce back?
Ceres Power shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Ceres Power shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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