Shares of Powerhouse Energy Group PLC (LON: PHE) appear to have recently bottomed at the 4.44p level and could stage a comeback rally if the level holds over time.
Investors have waited patiently for the company’s shares to bottom since the start of the year following December’s parabolic rally. Still, each time the shares have broken below the last support level and headed lower.
The last time I covered the stock, it was trading in the range shown below, and we were hoping that it would find support there and rally higher. Unfortunately, the stock went on to break below support and head to the current support zone.
Powerhouse Energy shares may have bottomed for now as the hydrogen energy company looks to expand its operations to approximately 77 sites within the UK and other European countries after proving its technology works.
Investors expect the company’s first international site to be in Poland after signing a heads-of-terms agreement with Hydrogen Utopia International (HUI) in November 2020.
Global demand for hydrogen energy is expected to grow from an estimated $143 billion in 2019 to $201 billion by 2025, and Powerhouse Energy is well-positioned to profit from this trend.
Powerhouse Energy has a unique operations model since it generates hydrogen energy from waste plastic, helping minimise the polluting impact of plastic waste on the environment while generating energy at the same time.
From a technical perspective, the company’s shares are poised to rally and present an excellent buying opportunity to bullish traders. However, just like in the previous articles, always use a stop-loss to limit your risk if the shares break below the support level and head lower.*
A positive fundamental announcement could be the perfect trigger for the next rally phase.
*This is not investment advice.
Powerhouse Energy share price.
Powerhouse Energy shares seem to have bottomed at the 4.44p level. Can they reverse course and rally higher?
Powerhouse Energy 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 Powerhouse Energy shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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