ITM Power had been a slow burner until now, on both a technical and fundamental basis. But it would appear that the hydrogen refuelling stations company is set to take off in a positive way.
ITM Power (ITM): Return To 35p Resistance Expected
Renewable energy has ebbed and flowed, rather like the tide, in recent years according to fossil fuel prices and economic conditions. But it is clear that it is a matter of when rather than if we shall see the big positive green transformation which has been so long coming. In terms of ITM Power, this month has seen it add a second hydrogen refuelling station in London and a new contract with Arval to supply hydrogen fuel. Looking forward there are expectations of news from Germany in terms of Thuga and power to gas plant developments. All of this explains why shares of ITM Power have been well supported in recent months, with the shares making a decent breakthrough in August through the 200 day moving average – a trend changing move through 17p. The stock is in a rising trend channel which can be drawn in from as long ago as February. The top of the channel currently runs towards 30p, a destination which is regarded as the minimum upside over the next month. Overall, a journey to 2015 resistance at 35p seems fair by the end of this year while the floor of this year’s channel at 20p is held on a weekly close basis.