In a positive development for investors, Plug Power Inc. (PLUG) has been identified as a potential rally candidate by trading experts. The stock is currently oversold and at a key support level, indicating the possibility of a significant upward movement.

When a stock is deemed "oversold," it means that it is trading below its typical range, often due to emotional and aggressive selling. In such situations, investors and traders tend to enter the market as buyers, expecting the stock to revert to its mean or move higher. Their buying activity could, in turn, push the price up.

Taking a closer look at the Relative Strength Index (RSI), a popular momentum indicator, it is evident that Plug Power's stock is currently in oversold territory. The RSI chart shows that the stock has been this oversold only twice this year, and on both occasions, a notable rally followed.

Support levels play a crucial role in preventing further selloffs and indicating a potential reversal in a stock's price. For Plug Power, the $2.30 level has acted as a solid support since January. Often, stocks reverse and rally when they reach support levels, as many buyers are looking to purchase shares at or near that price.

The combination of a significant buy interest at the current price level and oversold conditions could fuel a potential rally for Plug Power. As buyers compete against each other to secure shares, they may increase their bidding prices, potentially leading to a bidding war and a new upward trend.

With PLUG dropping to a price level that generates strong interest from buyers, there is a favorable chance for the stock to move higher. However, it is important to note that market dynamics are subject to changes, and investors should consider these factors alongside other relevant information before making any investment decisions.

Disclaimer: This article does not provide financial advice and should not be interpreted as such.