🚨 Trade Update: FCEL — Both Price Targets Hit ✅
FuelCell Energy has now reached both price targets, closing out the trade with a strong result.
We recommended FCEL on April 22, 2026, with a buy level above approximately $9.80. When the stock hit Price Target 1, we published a trade management update outlining how to lock in partial gains and manage the remaining position. FCEL has now reached Price Target 2 at $16.00 — a gain of approximately 63% from entry in under four weeks.
Bottom line: The plan played out cleanly. Both targets hit, the trade is officially closed, and the stop-loss never came into play.
Digi Power X Inc. (NASDAQ: DGXX) just broke out of a multi-month downtrend channel on massive volume and looks headed even higher.
As we’ll get to just ahead, the combination of a landmark $1.1 billion Cerebras AI infrastructure deal, accelerating commercial launch of its NeoCloudz GPU-as-a-Service platform, and a fresh technical breakout makes DGXX one of the more interesting setups on the board. Here’s what’s going on…
The Themes Behind the Move
Digi Power X is a vertically integrated power and data infrastructure company that develops grid-connected data center campuses across the United States — pivoting hard from its legacy roots in cryptocurrency mining toward becoming a high-performance computing (HPC) and AI data center host. The company operates through three segments: Cryptocurrency Mining, Sales of Energy and Electricity, and Colocation Services, and recently launched its NeoCloudz GPU-as-a-Service platform.
In plain English, when an AI company like Cerebras or SubQ AI needs huge amounts of low-cost power and physical space to run racks of GPUs for training and inference, DGXX is one of the few mid-cap players in the country with the grid-connected power assets and modular Tier III “AI pod” infrastructure ready to host them. Its business now hinges on executing the buildout of its 40-megawatt Cerebras campus in Alabama, signing additional GPU rental contracts, and managing the dilution required to fund all of that growth.
DGXX’s latest move reflects a powerful confluence of developments — strategic, commercial, and structural — that have come together in rapid succession to fundamentally reframe the company’s identity from a speculative crypto-miner into a contracted AI infrastructure provider.
| Theme / Catalyst | What Happened | Why Traders Care |
|---|---|---|
| Landmark Cerebras AI infrastructure deal | DGXX recently announced a major Master Services Agreement with Cerebras Systems to build a 40-megawatt AI data center campus in Columbiana, Alabama. The deal is valued at roughly $1.1 billion over the initial 10-year term and could reach $2.5 billion with renewals. | This officially shifts DGXX from a speculative crypto-mining play into a legitimate, revenue-generating AI infrastructure provider with multi-year contracted visibility — a credibility upgrade that completely reframes how the market values the stock. |
| NeoCloudz launch + GPU rental momentum | DGXX signed a $19.6 million, 24-month GPU rental agreement with SubQ AI, marking the official commercial launch of its NeoCloudz GPU-as-a-Service platform. The contract begins May 15, 2026, adding near-term recurring revenue. | It proves there’s real, paying demand for DGXX’s compute capacity — not just the headline Cerebras contract. A working GPUaaS platform also opens the door to a steady stream of additional rental contracts as it scales. |
| Sector tailwinds | DGXX is riding one of the hottest macro trends of 2026 — former blockchain and crypto-mining infrastructure companies pivoting into HPC and AI hosting. Because these firms already own the heavy power infrastructure needed for crypto, they’re uniquely positioned to host energy-hungry AI GPUs. Hyperscalers and AI labs are scrambling for MW-scale capacity, with the AI capex boom projected to drive hundreds of gigawatts of new power demand by 2030. | Demand for grid-connected, power-ready AI compute is structurally rising and supply is constrained. DGXX’s combination of grid-connected power assets, modular Tier III ARMS 200 AI pods, and GPUaaS business directly leverages that imbalance. |
| Strengthened balance sheet | DGXX ended the most recent quarter with roughly $78.5 million in cash, no long-term debt, and a strong liquidity profile. TTM revenue stands at $34.19 million, with adjusted EBITDA losses narrowing to roughly $(3.2 million) for FY2025 as AI revenues ramp. | A debt-free balance sheet with $78M+ in cash gives DGXX flexibility to fund its AI capex cycle without immediate financial distress, and the narrowing EBITDA losses signal the operational pivot is starting to translate into improved unit economics. |
| Analyst coverage | Coverage is still thin but turning bullish fast. Alliance Global Partners (A.G.P.) recently raised its price target to $10 from $7 and maintains a Buy rating. The broader 3-analyst consensus target still sits at $4.00 (high $5, low $3.50), but those targets predate the Cerebras deal and look badly stale. | The disconnect between the stale legacy consensus and the freshly-raised A.G.P. target tells you Wall Street hasn’t caught up yet. A series of upward target revisions in the wake of the Cerebras deal could provide an additional tailwind as more analysts revisit numbers. |
| Market conviction signal | On May 8, 2026, DGXX upsized its “At-the-Market” (ATM) equity offering program by $100 million, bringing the total potential share sale to $175 million — a classic dilution headwind that typically pressures speculative names. Instead, DGXX broke out on enormous volume and closed sharply higher into the announcement. | When a stock breaks out on heavy volume right through a dilution overhang, that’s a rare tape signal that institutional money is buying conviction in the AI pivot — not waiting for a cleaner setup. The market is effectively pricing the capital raise as growth fuel rather than punishment. |
| Upcoming triggers | Traders are watching Q1 2026 earnings on Thursday, May 15, before the open, with a conference call at 8:30 AM ET that will include a highly anticipated operational update on the AI transition. Beyond earnings, key milestones include Phase 1 (15 MW) delivery of the Cerebras campus, additional GPU rental contracts, and the start of SubQ AI revenue on May 15. | A staggered set of high-conviction catalysts arriving in rapid succession — earnings, ops update, Phase 1 delivery, and incremental contract wins — each of which can independently move the stock through the summer. |
If needed, swipe or scroll sideways to view the full table.
Put it all together, and DGXX is looking less like a speculative crypto-miner pivoting on hype and more like a contracted AI infrastructure operator with multi-year revenue visibility, a debt-free balance sheet, and a powerful set of near-term execution catalysts.
The story is getting stronger by the week, but the chart is what could determine whether this move has more room to run in the near term. Here are the bullish technical signals traders should be watching now.
Bullish Technical Signals
#1 Downtrend Channel Breakout: On the daily chart, DGXX had been compressing inside a well-defined downtrend channel (marked in purple) for several weeks. Price has now broken decisively above the upper boundary of that channel on expanding volume — a classic breakout pattern that often marks the transition from distribution to accumulation. The breakout also resets the trend structure, opening the door for a new leg higher.
DGXX – Daily Chart
#2 Price Above Key MAs: Reinforcing the breakout, price now trades above both the 50-day and 200-day SMAs. When price clears both averages simultaneously, it signals that buyers are dominant across both the intermediate and long-term timeframes — not just a short-lived spike. These moving averages also double as dynamic support zones; as long as price holds above them, any pullback has a built-in floor.
#3 Bullish MACD: The MACD line has crossed above the signal line on the daily chart, confirming that short-term momentum is accelerating faster than the longer-term trend. The histogram is expanding into positive territory, reflecting a pickup in buying pressure. Historically, this crossover acts as a reliable buy signal, suggesting the path of least resistance remains to the upside.
#4 Bullish ADX: The directional indicators add another layer of conviction. The +DI line sits above the –DI line, confirming buyers control the trend direction. More importantly, the ADX line itself is rising and climbing from below –DI toward +DI, a pattern that signals not just a bullish trend, but an accelerating one. When ADX rises through this zone, it indicates the trend is gaining strength rather than fading.
#5 Above Support Area: Zooming out to the weekly chart, DGXX has cleared a key resistance-turned-support level at approximately $6.10 (marked by the pink dotted line). Former resistance becoming support is one of the most reliable patterns in technical analysis — it means the overhead supply that once capped price has been absorbed. The stock also trades above its 50-week and 200-week SMAs, confirming that the bullish structure holds on the higher timeframe as well.
DGXX – Weekly Chart
#6 Bullish TRIX: The TRIX indicator, a triple-smoothed momentum oscillator specifically designed to strip out noise, has crossed above the zero line. Because TRIX is intentionally slow and filtered, it ignores minor fluctuations entirely. A zero-line crossover, therefore, carries weight: it confirms that the underlying trend, beneath all the day-to-day volatility, has genuinely shifted positive. This aligns with the breakout signals on the daily chart and adds longer-term trend validation.
#7 Positive OBV: The weekly OBV (On-Balance Volume) is trending higher, indicating that volume on up-weeks consistently outpaces volume on down-weeks. Rising OBV is often a leading indicator — it reveals institutional accumulation happening beneath the surface before price fully reflects it. When OBV trends up alongside a price breakout, it suggests the move is backed by real capital, not just thin-volume speculation.
Risks to Consider
Even strong setups can fail, especially in a high-momentum AI-pivot name like Digi Power X. A few things could knock the stock off course:
- A breakdown back below the downtrend channel breakout level on heavy volume
- Negative company-specific news or broader market weakness — high-beta AI infrastructure names have been especially sensitive to shifts in hyperscaler capex sentiment
- Dilution pressure from the upsized $175 million ATM equity offering — while it strengthens the balance sheet, it adds incremental share supply that can weigh on near-term price action
- Momentum and valuation risk — DGXX has already run 200%+ over the past month and trades near 52-week highs on speculative future-revenue multiples, making it highly susceptible to a technical pullback once volume dries up
- Execution risk on the 40 MW Cerebras buildout — large AI data center campuses are notoriously capital-intensive, supply-chain-sensitive, and prone to construction delays
- Continued unprofitability — Q1 results will show ongoing losses, with TTM net loss of roughly $28.36 million, meaning execution has to stay on track for the operational-improvement thesis to hold
- Legacy crypto DNA — the company originally operated as Digihost Technology and remains exposed to the more speculative end of the infrastructure space, even after the rebrand
- Competition — the AI data center space is crowded with hyperscalers, neoclouds, and a wave of other former crypto miners chasing the same hyperscaler dollars
The Bottom Line
DGXX is breaking out of a multi-month downtrend channel on the daily chart while clearing a resistance-turned-support level on the weekly — a dual-timeframe technical setup that historically signals the start of a sustained move higher.
The fundamental story underneath the chart is just as strong: a landmark $1.1 billion Cerebras AI infrastructure contract, an operational commercial launch of NeoCloudz GPU-as-a-Service, and a debt-free balance sheet with $78.5 million in cash underwriting the AI buildout.
Combine that with multiple commercial and operational catalysts staggered through the next several months — Q1 earnings and ops update, Phase 1 delivery of the Cerebras campus, the start of SubQ AI revenue, and further GPU rental contracts — and DGXX looks like one of the more compelling risk-reward setups on the board right now.
If this is a trade you want to get in on, here’s how we’d play it. Below you’ll find two entry strategies — one for continuation and one for a pullback — with price targets that imply 24%–67% potential upside, plus the stop-losses we’re using to manage the downside.
Recommended Trade Setup
We’re presenting two entry strategies depending on how DGXX trades from here — one for traders who want to chase the breakout, one for those who’d rather wait for a pullback.
Setup A — Breakout Entry
| Item | Detail |
|---|---|
| Buy Level | Above approximately $8.70 |
| Price Target 1 | $10.80 — Potential upside: 24% |
| Price Target 2 | $12.00 — Potential upside: 38% |
| Timeframe | Next 2–4 months |
| Stop-Loss | $7.70 on a closing basis |
For a risk of approximately $1.00 per share, the target rewards are about $2.10 and $3.30 per share. That makes this roughly a 1:2 and 1:3 risk-reward trade. In other words, the setup offers nearly 2x to 3x more potential upside than downside.
Setup B — Pullback Entry (if the stock corrects)
| Item | Detail |
|---|---|
| Buy Level | Above approximately $7.20 |
| Price Target 1 | $10.80 — Potential upside: 50% |
| Price Target 2 | $12.00 — Potential upside: 67% |
| Timeframe | Next 3–6 months |
| Stop-Loss | $5.60 on a closing basis |
If needed, swipe or scroll sideways to view the full table.
For a risk of approximately $1.60 per share, the target rewards are about $3.60 and $4.80 per share. That makes this roughly a 1:2 and 1:3 risk-reward trade. In other words, the setup offers nearly 2x to 3x more potential upside than downside.
Happy Trading!
Tara and Greg