A couple of the Green stocks broke their trend today.
The first on is Ballard. (BLDP)
Ballard has had a wonderful run in 2021. We can see some negative divergence where price is higher and the PPO momentum is going lower. Today seemed to be a climactic move down on the biggest negative volume day on the chart. From the fresh new high yesterday, this was a significant reversal. I want to see it hold the $42 area, so BLDP will need to find some buyers right away.
The second chart that had a bad day is CleanSpark. CleanSpark plummeted 11% today after starting to turn higher. This was a good looking long setup on Monday, but it sure did not follow through. As I write a Cleantech list of names each week, this is a pretty big reversal. This was one of the setups I liked this week, so seeing a sudden reversal suggests the buy the dip strategy, might start to be in question.
American Battery Metals
American Battery broke an almost vertical trend. (ABML). This chart has been running hard, but this week it is starting to break trend. The PPO momentum trend of three months is also breaking. When these moves are parabolic, it is important to watch for some termination of the move. This one looks like a nice place to take profit for me. When you get a 10 X move, its always good to figure out an exit for a trader.
Many of the charts in the CleanTech space are still above the up-trend lines. As one of the leading areas of the market, it is also an important place to look for trend breaks to signal profit taking. There are lots of strong charts in the space still, but that quick 10% reversal on CleanSpark or Ballard Power giving up 50% of the 2021 gains in 1 day, it does suggest remaining focused on the potential for a wider break to show up in this area. Many of the SPAC’s have come in this area which is bubble-de-jour right now.
Greg Schnell, CMT, MFTA