The stock of PowerTap Hydrogen Capital stock (formerly Clean Power Capital) took another leg up last week. At the end of the week, the stock had gained 11.11 percent. In the two weeks before, the stock had come under heavy pressure and slumped by almost 70 percent. In all likelihood, this was profit-taking, as prices had surged impulsively in the previous week. This had led to a doubling of the price.
Those who traded the buy signal from the Relative Strength Index (RSI) on August 20 were even able to enjoy a stock gain of 150 percent. Provided that they also pulled the rip cord at the right time. On August 12, the stock had climbed to a high of CAD 0.300 on the Canadian domestic stock exchange. At that time, the RSI was already well into the overbought zone, suggesting a downward countermovement.
Easy come easy go
As quickly as it had gone up, it subsequently went down again. Only four days after the breakout high, prices fell to CAD 0.090, marking a new 2-year low. In the following days, this was pushed even further down to 0.085 CAD. Some will have worried whether the stock will actually run all the way back down to the Corona crash low at 0.070 CAD.
PowerTap Hydrogen Capital stock rises to CAD 0.100
The danger is still far from being averted, but last week the stock at least moved a little out of the danger zone. The share went into the weekend with a closing price of 0.100 CAD and thus again above an important chart mark. On a weekly basis, the stock has formed a doji, where the opening price (the first traded price on Monday) and closing price (the last traded price on Friday) were at the same level.
Does the doji initiate a trend reversal?
In candlestick analysis, a doji expresses indecision. If the doji forms, as in the case of PowerTap Hydrogen stock, in a downward phase and after a series of red weekly candles, this candle formation not infrequently initiates a trend reversal. So we can be curious about what will happen in the coming week. The bulls can already lie in wait.