Bloom Energy Corp. (NYSE:BE) shares declined in early Thursday trading, pressured by escalating geopolitical tensions and a broader market selloff.
The move followed a televised address by President Donald Trump at 9 p.m. ET Wednesday, in which he reiterated threats to “hit” Iran’s electric infrastructure and warned that military action could extend for another two to three weeks.
The absence of de-escalation language weighed on risk sentiment, sending S&P 500 futures down 1.24% and Nasdaq futures lower by 1.63%.
Short Interest Sees Notable Increase
Data shows short interest in Bloom Energy climbed during the recent reporting period. Positions rose from 22.04 million to 24.39 million shares. This brings the short float to 11.55% of the company’s publicly available shares.
With an average daily volume of 10.34 million shares, sellers would require 2.36 days to cover their positions.
Energy Market and Treasury Yields
The conflict has disrupted global energy routes, specifically the Strait of Hormuz. While Trump claimed the U.S. does not “need their oil,” the 10-year Treasury bond yielded 4.37% on Thursday morning.
The SPDR S&P 500 ETF Trust (NYSE:SPY) declined 1.42% to $655.24 as traders reacted to the “Operation Epic Fury” update.
Technical Analysis
At $126.20, Bloom is trading 15% below its 20-day simple moving average (SMA), the stock’s average price over the last 20 sessions. It’s also 3.5% below its 100-day SMA.
Moving average convergence divergence (MACD), a trend/momentum measure, is bearish with the MACD line at -5.4561 below the -2.4622 signal line. The stock is still well above its 200-day SMA (31.9% above).
Over the last 12 months, the stock is up 527.13%. Price is also well off the $180.90 52-week high set on Feb. 25.
- Key Resistance: $125.50
- Key Support: $130.00
BE Stock Price Activity: Bloom Energy shares were down 4.72% at $126.20 during premarket trading on Thursday, according to Benzinga Pro data.
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