|Ballard Power Systems (BLD), which was originally founded as Ballard Research, is one of the larger companies developing fuel cell technology and has a hydrogen-powered bus running in Vancouver, British Columbia.|
|This daily chart paints a rather painful picture of a stock trying to establish a bottom (Figure 1). Although the symmetry is not very good, we can discern that a possible triple bottom is in the making. Several indications lend some credence to this speculation.|
|FIGURE 1: BLD, DAILY. This chart hints at a thrust upward toward overhead resistance.|
|Graphic provided by: StockCharts.com.|
|The latest bottom attempt shows a candlestick pattern called a "tweezer" bottom. The long matching tails give this tweezer appearance. This can signal a bottom. The subsequent trading action supports this via a large bullish candlestick closing above the nearby overhead resistance of the 50-day exponential moving average (EMA). In addition, the increased volume signal over the past week of trading shows bullish conviction.|
|Several displayed indicators under the chart show an important development via positive divergences. Multiple divergences are often a harbinger of a coming move. Note the slope of these indicators rising while the stock price has been dragging bottom.|
The moving average convergence/divergence (MACD), the relative strength index (RSI), and the stochastic oscillator all hint at a move off the bottom of the chart. Looking at the Chaikin money flow indicator (CMF), we see a shift to bullish buying power. The previous time this happened was last June, when the stock catapulted from $4.40 to near $6.
|Should a tradable upthrust develop, an aggressive trader could target a zone between $5.55 and $6. This zone contains the overhead 200-day EMA, currently at 5.64, and previous resistance levels of 5.55 and near $6. For a better longer-term move to develop, we would have to see the stock find support from the always important 200-day EMA. Until that happens, speculative traders will most likely take the money and run in the surmised profit-taking zone of $5.60 to $6.|
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