The 2020 is drawing to an end – and it is already clear that it was the year of hydrogen stocks. French hydrogen leader McPhy Energy has risen about 850 percent since the beginning of the year and Plug Power has reached the 1,000 percent mark since summer 2019. Furthermore Ballard Power Systems Inc (NASDAQ: BLDP) stock almost tripled since January, following the recent rally.
But now the big question arises: Can the rally continue in 2021?
The McPhy Energy (EPA: MCPHY) stock reached a new all-time high of EUR36.70 on Tuesday. This means that the value initially continued the rise that started after the low of October 28 at EUR 19.50 . However, there was strong profit-taking following the new all-time high. They let the price drop to a low of EUR30.00 by Wednesday.
The second half of the previous week belonged to the bulls again. They launched a new attack on Thursday. It was very dynamic and was initially continued on Friday, so that a high could be formed at EUR 35.85. Subsequent to this, however, slight losses were recorded again.
With the weekly closing price of EUR 34.40, investors have a good chance of continuing the upward trend in the new week. Your next target is the all-time high of EUR36.70. The rise should continue towards the round EUR 40.00 mark if all time high is mark is pushed higher.
Thanks to billions in funding, the hydrogen revolution will only really take off in the next few years, which is why current sales are still small. But what is important for the billions in valuations already achieved on the stock market is that this changes quickly and that Plug Power, McPhy and BLDP justify their advance praise with enormous growth rates.
Even the heavyweights Ballard Power and Plug Power will increase their revenues by between 400 and 500 percent over the next five years. But the explosive growth is also offset by an extreme valuation. Even after expanding its business, the Canadian Ballard Power is now valued at 10 times its 2025 sales. The 2021 P/E ratio is even 45.
It’s unbelievable how Ballard Power stock price has developed over the last week. The Canadian company made a significant jump to $21.70. According to the expectation of analysts and investors BLDP stock is a buy, the share is likely to break the $22.00 mark in the next attempt. This would have made the value the best listing in the past 10 years.
The development is based on the fact that the USA will now focus on the hydrogen and fuel cell industry. Ballard Power’s stock is primarily a reaction to the US election. The Americans will primarily want to reduce their CO-2 emissions with the next government.
That said, the stock has been profiting since November 3rd. This in turn coincides almost exactly with the development of the share price over the past four weeks. It went up by a good 30%. Much of the strong development occurred in the second half of November in particular.
The courses are again in a powerful chart technical upward trend, so the observers of the technical chart would say that Ballard Power share is on the way to prices of at least $24. Until then, there are no more hurdles worth mentioning that still need to be conquered.
Latham, New York based Plug Power stock has been traveling up like a rocket since mid-March and has made a new 12-year high at $28.69 last Tuesday. On Wednesday, the day before Thanksgiving, the price fell again somewhat, but RSI and slow stochastics still indicate an overbought condition. A sustained correction would therefore be very beneficial for the share. A possible correction target would be the $20 mark, which it was able to break during November.
However, once the price has calmed down, things should go up. The share is supported by the Ichimoku indicator. Here the course runs above the cloud (also known as Kumo) and above the standard line (Kijun). This gives rise to two bullish signals. The cloud projected into the future has a green body and is therefore also bullish.