Powerhouse Energy share price resumes its downward trend for the second week in a row as the shares of the energy company trade 19% below its last week’s close. The sell-off intensified this week after Powerhouse announced its exit from the JV deal which resulted in a 14.7% correction.
The overall market sentiment in the UK equities was positive despite Powerhouse shares sliding 3.5% on Tuesday. The FTSE100 gained 21 points after the banking and consumer shares showed growth. At press time, the benchmark index is standing at 7,346 points and is up 0.26% on the daily timeframe.
On Monday, the management of Powerhouse announced to ditch its plan to invest in the waste plastic-to-hydrogen facility joint venture with Hydrogen Utopia International. The energy company defended this exit from the deal by arguing that it would allow for other pipeline projects and improve its cash flow.
Nevertheless, the recent sell-off in Powerhouse energy share price shows that the investors didn’t take the JV exit lightly.
A few weeks before its exit from the Ireland deal, Powerhouse received a confirmation from the European Patent Office regarding its method of treatment of waste. The method involves the use of a thermal conversion chamber, which heats the waste to produce usable gas.
LON: PHE has gained a very bearish outlook as the selling pressure keeps on intensifying. A detailed analysis of the chart below reveals the price has been in a downtrend since December 2020, when it hit its all-time high. The shares have slid almost 97% since then in the period of 2 years.
I expect the Powerhouse energy share price to find support at the 0.27p level which was the 2018 low. However, the forecast may change if the bulls muster up some strength and reclaim the 0.4p key level which lies 25% above the current price.
This post was last modified on Oct 31, 2023, 14:58 GMT 14:58