Hydrogen fuel company FuelCell Energy (NASDAQ:FCEL) has been in the middle of a vicious downward spiral in the markets and that can be gauged by the price action in its stock.
Trading Data
On Friday, FCEL stock gained 3.37% to $3.68 with more than 21.24 million shares, compared to its average volume of 28.86 million shares. The stock has moved within a range of $3.3950 – 3.7000 after opening trade at $3.58.
Major Trigger
Over the course of the past month, the stock has suffered from a massive selloff and gone down by as much as 29% as a consequence. Can it make a comeback or is the slide going to continue for the foreseeable future? In this situation, it ought to be acknowledge that FuelCell mainly suffered because of the change in sentiments for companies which are highly dependent on growth.
Once the Omicron variant of the COVID-19 virus started spreading in December 2021, investors became far more cautious with regards to growth stocks. Considering the fact that FuelCell Energy is the quintessential growth stock, it was perhaps not a surprise that the stock suffered from a strong selloff.
It is also necessary to point out that during the broad selloff in growth stocks, those companies which are involved in the hydrogen fuel and electric vehicles industries suffered significantly. It is now going to be interesting to see if the FuelCell stock can actually make a comeback once the sentiments change.
Technical Data
FCEL stock is trading below the 20-Day and 50-Day Moving averages of $4.61 and $6.35 respectively. Moreover, the stock is trading below the 200-Day moving average of $7.53.
