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Porsche share price continued its freefall on Friday after the company published the latest vehicle delivery data. It tumbled to €42.35, its lowest level since November 2021, and 14% below its highest level in November. It remains 61% below its all-time high.

Porsche vehicle sales plunge

Porsche, one of the best-known vehicle brands, has come under intense pressure in the past few years. This performance happened as it faced a triple-whammy. The first one came from the United States, where Donald Trump added a 15% tariff on German imports.

These tariffs affected its business more than other companies because the US is its fastest-growing market. Also, it manufactures all its vehicles in Germany.

Second, its decision to expand its business to the electric vehicle segment flopped. While its first EV saw encouraging sales, the business then hit a wall. This is an issue that has affected other car companies like General Motors and Ford that have announced huge write-downs recently. 

READ MORE: Here’s why the Porsche stock price has imploded

Third, all this was happening as its business in key markets was slowing. A good example of this is China, where its business has faced substantial competition from local brands like BYD, XPeng. Nio, and Xiaomi. 

In a statement, Porsche said that its vehicle deliveries dropped by 10% last year, the worst performance since 2009. It delivered 279,449 vehicles last year, with Germany and China leading the drop. 

Porsche, with a new CEO, has pledged to improve its business this year. It has scaled back its EV ambitions and pledged to launch new vehicles and boost its margins.

The most recent results showed that its revenue dropped by 6% to €26.86 billion in the third quarter. Its operating profit plunged by 99% to €40 million as its deliveries to customers fell by 6%.

On the positive side, Porsche is still a strong brand that may resume growing this year. For example, Germany announced that it will start offering a €6,000 package to help consumers buy electric vehicles. These measures may help the company start doing well.

Porsche share price technical analysis

Porsche stock chart | Source: TradingView

The weekly timeframe chart shows that the Porsche stock price has plunged in the past few years. It moved from a high of €110 in 2023 to the current €42.

The stock remains below all moving averages, a sign that bears remains in control. Also, the stock has formed a giant bearish flag pattern, which is made up of a vertical line and an ascending channel.

Therefore, the most likely outlook is where the stock continues falling, potentially to the all-time low of €38.6. This price was its lowest point in March 2025. A move below that level will point to more downside, potentially to the support at €35 or €30.

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The crypto market is going up today, with Dash and Story jumping by over 30% in the last 24 hours.

Other top gainers were coins like Pepe (PEPE), Optimism (OP), Internet Computer (ICP), and Pudgy Penguins (PENGU).

The crypto market is going up after the recent US jobs and inflation data

One reason why the crypto market is going up today is that the US has published mixed macro numbers recently.

A report released on Friday showed that the economy created just 50,000 jobs, while the unemployment rate improved to 4.4% 

Another one released on Tuesday revealed that the core consumer inflation softened in December. It moved from 2.7% in November to 2.6% in December, a trend that may continue this year. 

Donald Trump has made affordability a major issue this year as the US moves to the mid-term elections.

He has announced a cap on credit card interest rates, barred institutional investors from buying homes, and asked Fannie Mae to start buying mortgage securities worth over $200 billion. 

Trump is also urging American oil companies to boost production, a move he hopes will lead to lower gas prices.

Therefore, a combination of soft labour market data and lower inflation will push the Fed to start cutting interest rates.

CLARITY Act markup and vote

The crypto market is going up as investors reflect on the improving regulatory environment in the United States. The Senate has now published the text for the CLARITY Act ahead of the markup event on Thursday. 

There are chances that the Senate will ultimately pass the bill, making it the second major legislation after the GENIUS Act. These bills are aimed at making the United States the crypto capital of the world. 

The SEC is already working on this goal. For example, it has ended various lawsuits that were filed by Gary Gensler’s team. It has also launched a crypto exemption week and approved numerous cryptocurrency ETFs.

SCOTUS ruling on Donald Trump’s tariffs

The crypto market is going up as investors wait for the upcoming ruling on Donald Trump’s tariffs.

This ruling is widely expected to happen later today, with a Kalshi poll showing that the odds that they will vote in favour of these tariffs are at 33.8%.

These odds have dropped from over 56% in September last year.

SCOTUS ruling odds | Source: Kalshi

A decision to end Trump’s tariffs would be a good thing for the crypto market. In theory, it would lead to lower prices as companies boost imports to the country. 

However, it is worth noting that Trump has some other options to implement the tariffs. Most of these options will only be implemented after a lengthy investigation.

Crypto Fear and Greed Index has jumped

Meanwhile, data shows that the Crypto Fear and Greed Index has rebounded. It has moved from the extreme fear level of 10 in December to the neutral point at 52.

Historically, crypto prices do well when the index is in a slow uptrend. They then drop sharply whenever the index moves to the extreme greed zone. 

Crypto Fear and Greed Index | Source: CMC

More data show why the crypto rally is happening.

For example, the futures open interest has soared to $146 billion, the highest level in months, while short liquidations soared by 218%

The post Here’s why the crypto market is going up today appeared first on Invezz

The Atlassian stock price continued its strong downward spiral this week, reaching its lowest level since August 2024. TEAM has plunged by 72% from its highest level in 2021 and by 57% from its 2025 highs. This crash has brought its market capitalization down from over $124 billion to $36 billion today. 

Atlassian stock has crashed amid growth concerns 

TEAM stock price has crashed as concerns about its growth trajectory continued amid the ongoing AI boom.

The average estimate is that the company’s revenue for the year will be $6.31 billion, up by 20% on an annual basis. This growth trajectory is expected to fade in the next financial year to 18%.

There are also significant concerns about the ongoing dumping by its insiders, which has been going on for years. Data compiled by Barchart shows that insiders have executed 533 sell trades, dumping nearly 4 million shares. At the current price, these stocks are worth over $538 million.

The insiders selling the shares are Michael Cannon-Brookes, the CEO, and Scott Farquhar, the founder. While these sales are part of the routine financial management, they raise concerns about their confidence in the company. 

TEAM insiders are dumping the stock | Source: Barchart

Additionally, there are concerns about the rising competition in its industry. Some of its most notable competitors are companies are Microsoft, GitLab, Salesforce, and Asana. 

Atlassian’s business is growing

The most recent financial results showed that the company’s business was doing well, and the management expects the trend to continue. Its revenue rose by 21% to over $1.4 billion, with its cloud business continuing its growth.

The company’s business has confirmed adding customers, with its customer count hitting over 300,000 and monthly active customers hitting over 3.5 million. Most importantly, its net loss narrowed from over $123 million in the first quarter to over $54 million.

The company’s margins continued growing, with the gross margin moving to 82% from the previous 81.7% as the company continued cutting costs.

Its management believes that the company has more room to grow, with the gross margin in the second quarter of ‘26 coming in at 85% and the operating margin being minus 5%.

Data compiled by Yahoo Finance shows that the average estimate is that the company’s revenue rose by 20% to $1.54 billion. The next quarter’s revenue is also expected to be 21.6% to $1.65 billion.

There are also signs that the company has become undervalued, with its non-GAAP price-to-earnings ratio being at 30, much lower than the five-year average of 113. Its Rule-of-40 multiple based on the levered free cash flow stands at 43%.

TEAM stock price technical analysis 

Atlassian stock price chart | Source: TradingView 

The weekly timeframe chart shows that the Atlassian stock price has come under pressure in the past few months, moving from a high of $326 in 2025 to the current $137. It is now attempting to move below the important support level at $135, its lowest level in August 2024.

The stock has continued to remain below the 50-week and 100-week Exponential Moving Averages (EMA). Also, the Supertrend indicator has remained in the red.

Also, the MACD indicator has remained below the zero line, while the Relative Strength Index (RSI) is nearing the oversold level.

Therefore, the stock will likely continue falling in the near term, with the next key support level to watch being at $100. However, the stock will likely rebound later this year as investors buy the dip.

The post Atlassian stock crashes amid sustained insider sales: is it a buy? appeared first on Invezz

Adobe stock has evolved from one of the hottest trades in Wall Street into one of the top laggards. It plunged to a low of $309, its lowest level since November 2022, and 55% below its highest level in 2021 it has erased billions of dollars in value as the market capitalization dropped from over $340 billion to the current $129 billion.

Analysts are concerned about the Adobe stock 

Wall Street analysts are highly bearish about Adobe, one of the top companies in the technology industry. Oppenheimer analysts downgraded the stock from outperform to market perform, citing its potential disruption by more advanced AI tools.

Goldman Sachs has a sell rating and a price target of $290, while BMO and Jefferies recently downgraded the company. As a result, the consensus target for the stock has dropped from $575 12 months ago to the current $406.

The main bearish view is that AI tools are becoming so advanced that demand for some of their products will continue to wane over time. Also, investors believe that some of its recently launched AI products have a long way to go.

READ MORE: Adobe stock: why its measured AI strategy may prove ‘winner’ in long run

Most importantly, the company has been disrupted by firms like Figma and Canva. Canva, an Australian company, has become a major name in the design industry, with the valuation in the private market rising to over $42 billion.

Additionally, the company has moved from being a fast-growing tech giant to one whose growth trajectory has stalled. The most recent results showed that its revenue jumped by 10% and reached a record high of $6.19 billion in the fourth quarter of FY’25. 

The company ended the quarter with Remaining Performance Obligations (RPO) of $22.5 billion, a number that analysts expect will continue to grow. 

ADBE has become a bargain 

On the positive side, Adobe has become a bargain on most metrics. For example, the company has a forward PE ratio of 13.9, lower than the five-year average of 30 and the sector median of 25.

Additionally, the company has a forward PEG ratio of 1.07, which is also lower than the sector median of 1.71.

The company also has a good Rule-of-40 multiple as its growth remains at 10% and its EBITDA and net income margins are at 30% and 40%, respectively. This means that the lowest multiple is ~40, which is a sign that its growth and margins are balanced.

Supporting the view is the fact that analysts expect that its revenue and profitability growth will continue in the future. The average estimate is that its revenue will be $26 billion and $28.35 billion, up by 9% YoY.

Its earnings-per-share (EPS) is expected to move from $20.95 in 2025 to $23.45 this year. The earnings per share is expected to move to $26.3 in the next financial year.

ADBE stock price technical analysis 

Adobe stock chart | Source: TradingView

The weekly chart shows that the Adobe stock price has been in a strong downward trend in the past few months, reaching a low of $309, its lowest level since October 22.

A closer look shows that the stock has formed a giant falling wedge pattern whose two lines are about to converge. A wedge is one of the most common bullish reversal signs in technical analysis.

Therefore, there is a likelihood that the stock will rebound in the coming years as the company has become a bargain. If this happens, the next key resistance level to watch will be at $350. The alternative scenario is where it drops and hits the key support level at $272, its lowest level in September 2022.

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XRP price pulled back for the second consecutive day after the Senate withdrew the planned CLARITY Act markup. Ripple token dropped to $2.090, down from this week’s high of $2.188. It also remains in a local correction after falling by 13% from its highest point this year.

XRP price falls after CLARITY Act Markup Delay

Ripple and other altcoins retreated after the Senate Banking Committee withdrew the planned markup of the CLARITY Act. This withdrawal happened after Coinbase withdrew its support for the landmark legislation.

Brian Armstrong, the company’s CEO, identified four main issues in the bill. Its most important issue is that the bill would put limits on stablecoin rewards, which it currently offers. 

Senators added these limits after facing substantial pressure from banking and credit union lobbyists. These entities argue that allowing these rewards will lead to capital flight from their institutions to crypto exchanges. 

Potential catalysts for the Ripple token

Despite the challenges, the XRP price has numerous bullish catalysts that may boost its performance. First, Ripple Labs has continued to score regulatory wins in the past few months. For example, it received a license to operate in Luxembourg, which is a member of the European Union. 

The Luxembourg license came after it received a similar one from the UK. It brings its global operating licenses to over 70. This license means that the company will be able to operate in these countries and have deals with institutions.

Just recently, the Office of the Comptroller of the Currency (OCC) granted Ripple a banking charter in the United States. This license helped to transform it from a crypto payments provider into a federally regulated institution. It also allows it to offer custody and other banking solutions. 

Second, XRP ETFs have continued to do well since their approval late last year. The funds added over $10.6 million in inflows on Wednesday, the fifth consecutive day of inflow. The funds have now brought in $1.26 billion in inflows and have $1.56 billion. These inflows will likely continue to accelerate since the assets account for 1.19% of XRP’s market capitalization. Bitcoin and Ethereum have a ratio of over 5%.

Third, Ripple has become a major company in the booming stablecoin industry. Ripple USD (RLUSD) has gained $1.3 billion in assets, with nearly $400 million of them being in the XRP Ledger. 

Macro factors will likely boost the XRP price in the near term. For one, the Federal Reserve is expected to maintain a dovish tone this year, with analysts expecting two to three cuts. 

Ripple price technical analysis 

XRP price chart | Source: TradingView

The three-day chart shows that the XRP price has rebounded after finding a strong support at $1.7688. It has now moved slightly above the descending trendline that connects the highest swings since October 1. 

The coin is also attempting to flip the 25 and 50-day Exponential Moving Averages (EMA). Therefore, the most likely scenario is where the coin will rebound and continue rising. If this happens, the next key level to watch will be at $3. 

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The crypto market held steady today, Jan. 15, as investors reacted to the withdrawal of the Market Structure Bill, commonly known as CLARITY. Bitcoin was trading at $96,747, while the market capitalization of all tokens jumped to over $3.26 trillion. This article provides a forecast for top altcoins like Dash (DASH), Monero (XMR), and Internet Computer (ICP).

Dash price prediction

Dash, a top privacy token, was one of the best-performing coins this week as it jumped to a high of $88.07, its highest level since November 17. This rebound happened as investors maintained their focus on privacy tokens following last year’s surge of Zcash.

Dash price went parabolic after forming a double-bottom pattern at $36.42 and a neckline at $47. A double-bottom is one of the most common bullish reversal patterns in technical analysis.

It has moved from the oversold level of the Murrey Math Lines tool and has now risen to the bottom of the trading range. Also, it has jumped above the 50-day and 100-day Exponential Moving Averages, while the Relative Strength Index (RSI) and the MACD have all pointed upwards.

The RSI has moved to the overbought level of 81, its highest level since November 3 last year. Therefore, the most likely scenario is where it retreats a bit, potentially to the ultimate support at $50, and then resumes the uptrend.

Dash price chart | Source: TradingView 

Monero price prediction 

Monero price has been one of the best-performing tokens in the past few months, moving from a low $167 in April to a high of $786 this week.

The surge started after a US court ruled in favor of Tornado Cash and its founder, leading to more demand for privacy tokens. It then accelerated after Zcash made a strong breakout in the fourth quarter.

Monero moved above the key resistance level at $436, its highest level in May 2025, confirming the bullish outlook. It has continued rising this week and moved to the ultimate resistance level of the Murrey Math Lines tool. The coin remains much higher than the 50-day and 100-day Exponential Moving Averages, while the Relative Strength Index has jumped to the extreme overbought level at 87.

Therefore, the coin will likely continue rising as bulls target the key resistance level at $875, the extreme overshoot level of the Murrey Math Lines tool.

XMR price chart | Source: TradingView

ICP price forecast 

Internet Computer token has been one of the best-performing tokens in the crypto industry this week as it jumped to a high of $4.688, its highest level since November last year. 

This rebound happened after the team published a document on Mission 70, which aims to boost its tokenomics by boosting demand and reducing its supply through burning. The goal is to eventually keep reducing the token’s inflation by at least 70%.

ICP price has moved to the Strong, Pivot, and Reverse level of the Murrey Math Lines tool and the 50-day EMA. However, it has formed a head-and-shoulders pattern with a neckline at $2.8, which is a common bearish reversal chart pattern. 

Therefore, there is a likelihood that it will retreat as investors start booking profits. If this happens, the initial target will be the neckline at $2.80

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Rheinmetall share price has rebounded this year. It has jumped by 20% in 2026, making it the best-performing company in the DAX Index. It was trading at €1,896, up by nearly 35% from its lowest in December last year. 

This article explores why the stock has rebounded and why technicals suggest that a retreat could be coming soon.

Rheinmetall share price jumps as hopes of defense spending rise

The ongoing Rheinmetall stock price has coincided with the rising hopes that defense spending in the United States and Europe will continue rising in the coming months as geopolitical woes rise.

European countries, especially Germany, are working on increasing defense spending this year, with most of these funds going to defense contractors. Germany plans to spend about €108.2 billion, an increase of between €20 billion and €29 billion from what it spent last year.

More European countries are expected to continue boosting defense spending in the coming years. Estimates are that European defense spending will soar to over €426 billion by 2027, up sharply from €381 billion in 2025.

The main reason for this surge is that Donald Trump has pushed NATO to boost defense spending to 5% of the GDP over time. Also, there are concerns that Trump will use military power to get Greenland.

Meanwhile, Donald Trump has suggested that the US government should boost its defense spending to $1.5 trillion from slightly below $1 trillion today. This explains why other military contractors like Rolls-Royce, BAE Systems, and Babcock have soared this year.

Rheinmetall’s growth has accelerated 

The most recent results showed that the company’s growth has accelerated in the past few months, helped by the soaring demand and its recent acquisitions.

Data showed that its backlog jumped to over €80 billion in 2025 from €54 billion a year earlier. Its backlog has narrowed to that of some American defense contractors like RTX, Northrop Grumman, and General Dynamics.

The results also showed that the company’s sales rose by 20% in the first nine months of last year to over €7.5 billion, with its defense business growing by 28% 

Its margins have also done well in the past few months, with its operating profit margin rising to 11%. This margin growth will likely continue in the coming years. Also, its operating free cash flow rose to over €813 million.

Still, the main challenge for the company is that it has become highly overvalued. It has a trailing price-to-earnings ratio of 97 and a forward multiple of 50, which are higher than other companies like Nvidia and AMD.

Rheinmetall stock price technical analysis 

RHM stock chart | Source: TradingView

The daily timeframe chart shows that the RHM stock price peaked at €1,999 in October last year and then retreated to a low of €1,417 in December.

It has now rebounded and is nearing the important resistance level at €1,999. It has now moved above all moving averages, which is a bullish sign.

However, the stock has formed a head-and-shoulders pattern whose head is at €1,999 and the shoulders are at €1,895. Its neckline is at €1,480.

Therefore, there is a likelihood that the stock will pull back in the coming weeks, potentially to the key support level at €1,700. This view will remain as long as it is below the right shoulder at €1,895.

However, a move above the key resistance level at €1,999 will point to more gains over €2,000, and possibly to have €2,225, the average estimate among analysts.

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LESG share price has remained under pressure in 2025 as its exchange business slowed amid the London IPO drought. It retreated to a low of 8,102p, down by 32% from the yearly high of 12,015. It has now formed a highly bullish pattern, pointing to more gains this year.

LSEG launches a new settlement service

The most recent news from the London Stock Exchange Group is that it has partnered with Canton to launcha new settlement service. Known as the Digital Settlement House, the service will enable instant settlement between independent payment networks.

LSEG hopes that the service will be used by market participants to support the final leg of foreign exchange, digital asset transactions, and settlements. The company said that the service will have DiSH Cash, which will operate accounts at commercial banks, where it will be:

“providing members with instant ownership of a commercial bank deposit at any bank within the LSEG DiSH network, and a mechanism for the 24/7 movement of commercial bank money.”

The new launch comes at a time when the company’s business is facing some headwinds as the IPO drought in the UK continues. Instead, more companies have announced either delisting or dual-listing measures, with many of them moving to the United States.

Still, its business has done well, helped by its data analysis business. LSEG’s revenue rose by 4.8% in the third quarter to £2.21 billion in the third quarter quarter. Most of this growth came from its risk intelligence business, which made £144 million, up by 9.9% from the same period a year earlier.

Its data and analytics business made £982 million, while FTSE Russell made £241 million. The company also announced a huge share buyback, worth about £3.5 billion.

Analysts have a favorable view of LSEG stock. Data compiled by TradingView shows that the average estimate for the stock is 12,330p, much higher than the current 9,050p. The most optimistic analyst sees it rising to 13,790p, up by 53% from the current level.

LSEG share price technical analysis 

London Stock Exchange Group stock chart | Source: TradingView

The daily timeframe chart shows that the LSEG share price peaked at 12,015p in February last year and then plunged to a low of 8,102p in September. A closer look at how the stock plunged shows that it has an inverse similarity to what is happening today.

It initially peaked at 12,050p, then dropped to 10,490p, rebounded to 11,745p, then dropped to a low of 10,490p, and then rebounded the last time and then dropped to the yearly low of 8,102p.

The same situation is happening today in the opposite direction. It initially dropped to 8,102p, then rebounded to 10,020p, dropped to 8,312p, then rebounded again to 8,980p.

A closer look also shows that it is forming a double-bottom pattern whose neckline is at 10,020p. It has already moved above the 50-day Exponential Moving Average (EMA).

Therefore, there is a likelihood that the stock will rebound, potentially to the neckline at 10,020p, which is 11% above the current level. A move above that price will point to more gains, potentially to last year’s high of 12,000p. However, a drop below last year’s low of 8,102p will invalidate the bullish outlook.

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The Nasdaq 100 Index and its top exchange-traded funds (ETFs) like the QQQ and JEPQ are stuck in a tight range this week as investors wait for key corporate and macro news from the United States. 

The index was trading at $25,787, a few points below the all-time high of $26,787. This article explores some of the top catalysts to watch this week.

Nasdaq 100 Index ascending triangle points to a bullish breakout 

One potential catalyst for the Nasdaq 100 Index is that it has formed an ascending triangle pattern, a common continuation sign in technical analysis. This pattern is made of a horizontal line, which, in this case, is at $25,860. It also has a diagonal trendline, which connects the lowest point in November, December, and this month.

The index has also remained above the 50-day Exponential Moving Average (EMA) and the Supertrend indicators. It is also above the Supertrend indicator. 

Therefore, the most likely scenario is where the stock makes a strong bullish breakout in the coming weeks, potentially to the all-time high of $26,178. A move above that level will point to more gains, potentially to the psychological level at $27,000.

Nasdaq 100 Index chart | Source: TradingView

Corporate earnings season 

The other key catalyst for the Nasdaq 100 Index and its ETFs, like QQQ and JEPQ, is the upcoming corporate earnings from some of the biggest companies in the United States.

JPMorgan, Bank of New York Mellon, and Delta will be the first companies to publish their numbers on Tuesday. Bank of America, Wells Fargo, and Citigroup will publish on Wednesday, while Morgan Stanley, Goldman Sachs, and BlackRock will publish on Thursday.

While all these companies are not in the Nasdaq 100 and its ETFs, chances are that they will set the tone on what to expect in this earnings season. 

Data compiled by FactSet shows that the average earnings estimate is that they grew by 8% in the fourth quarter. However, the final data will likely be better than estimates as it has always done.

More earnings will continue to come out in the next few weeks, including popular names like Microsoft, Apple, Microsoft, and Meta Platforms.

US macro data 

Meanwhile, the Nasdaq 100 Index and key ETFs like QQQ and JEPQ will react to the upcoming US macro data, which will help to set the tone for the Federal Reserve.

The first important data will come out later today. Economists expect the data to show that the headline Consumer Price Index (CPI) rose 2.6% and the core CPI rose 2.7%.

US inflation data is important as it will help to determine what the Federal Reserve will do in its next meetings this year.

The inflation report comes a few days after the Bureau of Labor Statistics (BLS) released the relatively mixed nonfarm payrolls (NFP) data. The data showed that the economy created 5ok jobs, while the unemployment rate improved from 4.6% in November to 4.4%.

Meanwhile, the US will release the latest Producer Price Oscillator (PPO) and retail sales on Wednesday. 

These numbers come in the same week the Justice Department announced a possible lawsuit against Jerome Powell, the head of the Federal Reserve. Most analysts believe that the lawsuit is because of the ongoing differences between Jerome Powell and Donald Trump.

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Plug Power stock price has stabilized in the past few weeks, ending the recent plunge that pushed it from last year’s high of $4.57 in October to a low of $1.70 in November. It was trading at $2.28, up by 35% from its lowest point in November. This article explores why the stock may crash soon as a risky pattern forms.

Plug Power stock price technical analysis 

The daily timeframe chart shows that the PLUG stock price has crashed in the past few months, moving from a high of $4.57 to the current $2.28.

It has remained below the Supertrend indicator, which has remained in the red in the past few months. In most cases, an asset remains in a downward trend as long as the indicator is in the red 

Most importantly, the stock has formed the risky bearish flag chart pattern, which is made up of a vertical line and an ascending channel. It has also dropped below the Strong, Pivot, and Reverse level of the Murrey Math Lines tool.

Therefore, the most likely scenario is where the PLUG stock continues falling, potentially to the next key support level at $1.56. This target is at the Ultimate Support level of the Murrey Math Lines tool, which is about 30% below the current level.

However, a move above the upper side of the ascending channel will invalidate the bearish outlook and point to more gains, potentially to the Major S/R pivot point at $3.15.

PLUG stock chart | Source: TradingView

Plug Power is facing major headwinds 

The company is facing major headwinds, which will likely push it lower in the coming months. One of the biggest challenges is that some analysts have downgraded the company. The most recent downgrade came from analysts at Cowen, who slashed the target from $4 to $2.

Susquehanna, Morgan Stanley, and BMO analysts have also downgraded the company in the past few months, raising concerns about its growth prospects. 

Another major risk is that the company’s shareholders are voting on whether to increase the number of authorized shares from 1.5 billion to 3 billion. 

In its statement, the management noted that increasing the number of authorized shares will help it to maintain operating flexibility, which is a coded word for dilution. 

Plug Power has been one of the most dilutive companies in Wall Street. It has raised the number of outstanding shares from 214 million in 2018 to 1.2 billion today. 

It diluted its shareholders as its losses soared. Data shows that the company had a net loss of $2.1 billion in the last financial year and over $5.2 billion in the last five years. The most recent fundraising happened after raising $375 million in convertible senior notes. 

The company will likely raise more money in the future as its profits remain elusive and as its backlog drops. 

At the same time, the company is highly shorted, with its short interest rising to nearly 25%. That is a sign that many investors still believe that the company has more weakness to go. However, in some instances, it is normal for highly shorted companies to surge as they go through a short-squeeze.

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