Bloom Energy (BE) Price Forecast: Support Holds, Trend Poised for Upside

Shares Consolidate Near Trend Highs

Shares of Bloom Energy Corporation (BE), a clean energy technology company that provides solid oxide fuel cell systems for on-site power generation, are consolidating near trend highs since they hit a trend high of $176.49 back in early February. The consolidation pattern shows relative strength, since it has held up better than many other listings, and it has stayed near those highs.

Recent downward pressure in equities failed to change the bullish posture. Support for the range has been seen near the 50-day moving average, currently at $150.72, and roughly half of the consolidation phase occurred above the prior trend high from November at $147.86.

Cup-with-Handle Pattern Develops

This resilience ties directly into the larger pattern that has developed, which shows a cup-with- handle basing pattern, with a higher and extended handle. Once the wider market bottoms and buyers take back control, BE is well positioned to respond with an upside breakout and continuation of the long-term bull trend. The current high for the trend, reached late February, is at $180.90, while the bottom support level for the consolidation is at $131.00. A measuring objective for the cup-with-handle pattern projects significant upside potential once cleared.

Breakout Contingent on $180.90

A sustained breakout above the $180.90 high will trigger a continuation of the bull trend, which would be confirmed by a daily close above that level. Short-term signs of strength appeared on Thursday as a retest of support near the 50-day moving average occurred, with the day’s low of $148.53. That was the lowest traded price in eight days and briefly triggered a range breakdown. The 50-day moving average is now around $150.76. Once support was found, buyers stepped in and pushed BE to an eight-day high of $167.97. However, volume was muted and below average, so volume has not yet confirmed improving demand.

Bullish Outside Day Reinforces Support

Nonetheless, a bullish outside day was generated on Thursday, encompassing the full range of the prior seven days. A daily close at $166.69 confirmed the bullish breakout. Thursday’s price action shows a flip from sellers initially being in control and breaking support to buyers taking control and breaking through resistance.

In summary, it marked a failed bearish continuation. Failed patterns frequently lead to sharp moves in the opposite direction. All told, Thursday’s action reinforces the durability of support near the 50-day moving average, paving the way for the cup-with-handle breakout to propel shares toward new highs as market leadership resumes.

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