SOS Limited (SOS) Stock Forecast: Purchase of power plants propels shares, charts still bearish
- Sos Ltd's shares have been rising by some 7% in response to upbeat news.
- The blockchain company has announced the purchase of three US-based power plants.
- Expanding its digital mining operations may boost the firm's fortunes.
- NYSE: SOS shares are still down on the month.
What does a cryptocurrency company need apart from the rising prices of digital coins? In the case of SOS Ltd. (NYSE: SOS), the answer is more mining power. THe China-based firm has announced that it signed a letter of intent to purchase three power plants, allowing it to expand its operations.
Stay up to speed with hot stocks' news!
The three utility operators are Sherman Development LLC, Niagara Development LLC, and Park Falls Management LLC. By venturing into hydroelectric power generation, the company is also burnishing its image – it is using green energy rather than a dirty one.
Tesla, an electric vehicle maker, has come under scrutiny due to its investment in Bitcoin. It hurts the image of Elon Musk – received a loan from the Obama administration for environmental efforts – in his attempts to win over skeptics.
SOS Stock News
Despite the exciting developments – and the increase in Bitcoin's price back above $60,000, NYSE: SOS is still suffering from a downtrend. Zooming out to the past month, a clear downtrend can be seen, with the early-April jump serving only as a "dead-cat bounce.
Some support awaits at $5.25, which is Friday's close and then at $5. The monthly low of $4.50 is the next cushion to watch.
Resistance is at $5.78, followed by the round $6 level. Further above, the lofty mid-March peak of $8 is next.
At the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.
Errors and omissions excepted.
Premium
You have reached your limit of 3 free articles for this month.
Start your subscription and get access to all our original articles.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
