ITM Power Price Prediction: Will This Stock Continue to Fall?

• The ITM price is trading at 79.12 GBX.
• The stock has been in bearish sentiment after it faced rejection from the 99 GBX level.  
• It has been traded with a volume of 1.098M in the last trading session.

ITM Power Plc (LSE: ITM) was founded by Jonathan A. Lloyd, John Alan David Wreford, and Donald James Highgate in June 2001. It is an energy storage and clean fuel company. It deals in the sales and manufacture of hydrogen energy systems for energy storage and clean fuel production.

ITM Power (ITM) Stocks: Financial Analysis

The ITM power company showed stable growth in its revenue over the last three years. The company raised its revenue from 4.28B GBP in 2020 to 5.63B  GBP in 2021. It showed a growth of 31.63% compared to the previous year. In 2022, the company’s revenue decreased to 5.23B GBP with a decline of 7.07% compared to the previous year.

This company’s gross profit has decreased in the last three years. It’s net income has also increased in negative values in the last three years. Its total debts have increased over the last three years. The firm has had a negative EPS, which has increased over the last three years.

All these factors show that the company has been booking losses over the last three years.

ITM Power (ITM) Stocks: Technical Analysis

At the end of May 2023, the ITM share price formed support at 66 GBX and initiated a bullish rally. It went up to 78.90 GBX and faced rejection from that level. It fell back to its 66 GBX support. The buyers got activated at 66 GBX support and started pushing the price in the upward direction.

The price formed the double-bottom pattern and it gave the breakout of the double-bottom pattern in July 2023. ITM Power’s stock rallied and went up to 99 GBX and faced rejection from there.

The price after facing rejection from 99 GBX started to fall to the 87.30 GBX zone. It again tried to go above 99 GBX, but faced rejection and fell back to 87.30 GBX. It led to the formation of a double-top pattern. In September 2023, the price gave the breakdown of the double-top pattern and fell to 78.90 GBX. That level is acting as support right now. 

Currently, the price is trading above the 78.90 GBX. If the price gives the breakdown of 78.90 GBX, it may fall to its support at 66 GBX. However, the price can be in bullish sentiment if it reclaims the 87.30 GBX level and breaks the 99 GBX resistance for the up move to 104 GBX.

Technical Indicators’ Prediction About the Current Trend

The ITM Power Price is trading below the 50 and 200 EMAs, which indicates the price is in bearish sentiment under the control of sellers.

The relative strength index is at 33.58. The RSI line is in bearish territory, indicating the ITM price is being influenced by the sellers.

Conclusion

The ITM Power Plc chart is in bearish sentiment at the time of writing. Both financial and technical analysis are pointing towards the fall in price. If the price gives the breakdown of 78.90 GBX, it may fall to its support at 66 GBX. However, the price can be in bullish sentiment if it reclaims the 87.30 GBX level. It may break the 99 GBX resistance and move up to 104 GBX.

Technical levels

Resistance levels: 87.30 GBX, 99 GBX and 104 GBX.

Support levels: 78.90 GBX and 66 GBX.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing or trading comes with a risk of financial loss.