Swing Trade or Long-Term Investment?

The technical setup in PLUG's charts looks almost ripe for a bullish swing trade. But this company continues to release poor financial statements. In some aspects, their financials are getting worse, in fact.

So, a long-term investment is probably a bad idea. But cheap penny stocks like this one can produce very profitable swing trades if you wait for the right moment.

With a technical setup like we are seeing in PLUG, I think it might be a good time for a little swing trade to the upside.

Personally, I believe this is a risky play. So, if you don't have extra cash to play around with, then I wouldn't touch this risky ticker symbol.

Nonetheless, the setup looks appealing. There is a potential reverse head and shoulders pattern that could form on the charts. This would be a bullish formation if it is completed.

There is a large buildup of relative volume since PLUG's price crashed to these low levels following their final earnings release of last year. This leads me to believe that investors are accumulating shares at these relatively discounted prices in anticipation of higher prices in the future.

It is possible that the long-term horizontal support is only temporarily holding the price up before a further crash. But I am willing to take a risk and enter into a long position here. A small position as this company has been performing poorly for a while now.

This is a risky trade, but I can't ignore the technical setup. So I will be taking up a small position. I believe the trade is very risky, so I will be taking a little profit off of the table from time to time if and when the price starts going up. And I will definitely set up a stoploss near previous lows. Wish me luck.

As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Don't invest money that you can't afford to lose. Give some of your investments time and know when to cut your losses.

Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.