FuelCell Energy Inc (FCEL) shares are taking a breather Thursday, sliding 5.64% to $12.87 as of midday. The broader market is actually in the green — the Nasdaq is up 0.31% and the S&P 500 has gained 0.43% — so this is a stock-specific pullback.
What's going on? It looks like profit-taking after a wild ride. Earlier this week, FuelCell Energy surged 48% from a Tuesday low of $9.76, hitting a new 52-week high of $13.66 on Wednesday. That kind of move tends to attract sellers looking to lock in gains.
The Bloom Energy Effect
The catalyst for the rally came from a peer: Bloom Energy Corp (BE). Bloom reported blowout earnings and announced a landmark partnership with Oracle Corp (ORCL) to power an AI data center campus in New Mexico. Oracle plans to deploy up to 2.45 gigawatts of fuel cell capacity — a massive deal that initially lifted the entire clean energy sector.
FuelCell Energy rode that wave, but now the sector is cooling off as investors reassess. The question is whether FuelCell can land its own big contracts or if it's just riding on Bloom's coattails.
Technical Check: Overheated but Bullish
From a technical perspective, FuelCell Energy is trading near the top of its 52-week range of $3.58 to $13.66. The stock is 51.2% above its 20-day simple moving average and 60% above its 100-day SMA — signs of an extended move. The relative strength index (RSI) sits at 74.68, which is in overbought territory (above 70). That doesn't mean the stock has to drop, but it suggests the recent surge was aggressive.
Over the past 12 months, FuelCell Energy has gained 213.17%. A golden cross back in October — when the 50-day SMA crossed above the 200-day SMA — supports the longer-term bullish structure, even if the near-term looks overheated.
Key levels to watch: resistance at $13.50 and support at $9.
For now, it's a classic case of a hot stock taking a breather. Whether FuelCell can sustain its momentum depends on whether the company can deliver its own catalysts — not just piggyback on Bloom's.
