Ceres Power Holdings plc (LON: CWR) shares rallied 5.18% today, bouncing off a crucial support zone, indicating the start of a new rally phase in the hydrogen fuel cell company.
Since early September, the clean energy company’s shares have been falling when they traded at 1257p to their currency price at the 1000p level as sellers remained in control of its share price.
Ceres Power recently released its half-year earnings results revealing that it had signed more commercial deals, including a €400 million investment commitment from Bosch, which intends to install 100 small-scale stationary fuel cell power stations this year.
Boch has committed to invest in Ceres Power’s fuel-cell systems for the next four years. The hydrogen fuel-cells company also highlighted its partnership with Weichai to build a 30kW stationary power system.
The two companies are negotiating a joint venture initiative to manufacture solid oxide fuel cell (SOFC) systems.
Ceres Power also mentioned that Doosan was planning a soft commercial launch in 2022 of its 10kW fuel cell system built using Ceres' technology.
During the six months, Ceres generated £17.4 million in revenues, a 96% jump compared to a similar period last year, with gross margins of 72% and a pretax loss of £0.4 million versus H1 2020’s pretax loss of £4.3 million.
The upbeat H1 results seemed to have zero impact on Ceres’ share price, which kept falling up to the 930p support level, where it found some relief as buyers stepped in to push prices higher.
However, Ceres shares have been trading sideways at the level for the past five days leading up to today’s rally, which could signal the beginning of a new rally phase.
Still, nothing is guaranteed in the markets, and we could easily see prices stagnate at the support level for much longer as the bulls or bears build up for a significant move in either direction once the balancing zone is broken.
*This is not investment advice.
Ceres Power share price.
Ceres Power shares were up 5.18% today to trade at 1016p, rising from its opening price of 966p.
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