With the world going green, hydrogen stocks will get explosive. We already know Goldman Sachs and Bank of America believe hydrogen could be an $11 trillion market. We know the Biden Administration just invested $7 billion into hydrogen hubs across the U.S.
We also know the market could be worth $410.6 billion by 2030 from $242.7 billion today. Again, all as the world goes green.
While hydrogen stocks haven’t yielded much in the way of returns, give it time. Buy related stocks. Forget about them. And check back in about a year or two. That being said, consider these three top hydrogen stocks.
Air Products and Chemicals (APD)
One of my favorite hydrogen stocks has been Air Products and Chemicals (NYSE:APD), which is a hot idea on any and all dips.
In fact, earlier this month, I noted, “The last time I mentioned Air Products and Chemicals, it traded around $275 on Oct. 24. Just days later, it’s up to $282.44, and is still a top hydrogen pick.”
Shortly after that note, APD would hit a high of $295.96 – and is showing weakness at double top resistance. If you pull up a two-year chart of APD, you can see RSI, MACD, and Williams’ %R are all overbought at the moment. From here, we’re likely to see some profit taking before we see another rip higher.
Also, if you pull up a two-year chart of APD, you can see it’s been trading sideways for most of the year. It seems to find support around $270 and resistance around $300 each time. Until APD breaks out of the channel, we can continue to trade every dip and rip.
Plug Power (PLUG)
Another wildly oversold hydrogen stock to buy and hold is Plug Power (NASDAQ:PLUG). For most of the last two years, it’s been a technical disaster. However, each time it gets as oversold as it is now, technically, it bounces back before making us nuts and dropping again.
The trigger for us with PLUG is again RSI, MACD, and Williams’ %R. In fact, on a two-year chart, you can see that when each is in oversold territory, PLUG bounces back shortly after. Helping, the company just said it is projecting a $6 billion revenue surge by 2027, and up to $20 billion by 2030. Even better, JP Morgan believes hydrogen stocks are “relatively safer” investments for the long term.
Ballard Power Systems (BLDP)
Ballard Power Systems (NASDAQ:BLDP) has also been a technical mess. But give this one time – and a good deal of patience, too. This one also has a history of bouncing around on RSI, MACD, and Williams’ %R over-extensions.
Another reason to like BLDP is its recent order for 177 hydrogen fuel cell engines from Solaris Bus & Coach, which will support the largest deployment of fuel cell city buses in Europe. About 127 buses will be deployed in Italy. Another 50 will be deployed in Germany and Italy. Even better, France just announced it will double its renewable power capacity by 2035. All in an effort to become carbon neutral by the time 2050 rolls around.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
