Advent Technologies Stock Price and Forecast: ADN sheds 14% after bombastic Thursday

• Advent Technologies stock exploded 244% on Thursday.
• ADN stock has given back 14% in Friday premarket.
• Advent will receive €782 million for a fuel cell production contract.

Advent Technologies (ADN) stock is down 14.8% to $3.40 in Friday's premarket. This is unsurprising as at least some traders will want to cash in after ADN shares advanced 244% to close at $3.99 the day before. The source of the surge in share price was the Massachusetts-based company receiving the nod from Greece on a €782 million contract involving fuel cell and industrial-scale electrolysis production.

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ADN stock news

Greece granted the contract to Advent via its Important Projects of Common European Interest: Hydrogen – Technology, Green HiPo program. The funding will be paid out over the course of six years, and Advent will build a factory in Greece's Western Macedonia region to manufacture fuel cells and large electrolysis systems. Advent still requires approval from the European Union, but the company is a shoo-in after being one of two companies to win contracts out of 20 firms in the running.

The Western Macedonia region currently relies on coal-powered electricity, and Advent's program is supposed to help usher the region into a greener future. The project mobilizes High-Temperature Proton-Exchange-Membrane technology, which at a high-temperature forces hydrogen protons through a membrane material that excludes the hydrogen electrons. These electrons have to travel through a circuit, creating electricity in the process, only to meet back up with the protons where they combine with oxygen to form water. 

This was a big contract for such a little company. Before Thursday's news, Advent had a market cap of just under $60 million, although it is involved in semi-secret research projects with two large automotive giants that it chooses not to name. French firm Arm Engineering utilized Advent's methanol-based fuel cell technology to create an experimental car that recently traveled over 2,055Km without refueling, a world record.

Dr. Vasilis Gregoriou, Advent Chairman and CEO, stated, "Today is a milestone day for Advent but also for Greece and Europe. Green HiPo will catalyse a sea-change of operational events within Advent while the project is implemented. Our application was initially submitted in April 2021, and the process for review and due diligence by the EU has been thorough. We have been clear and focused throughout the process, with the conviction that Advent’s Green HiPo project will be instrumental in hydrogen generation and clean energy production. Green HiPo demonstrates the commitment by Greece and the EU to rapidly decarbonize power production and to move forward to energy security and independence with hydrogen technologies playing a crucial role."

ADN stock forecast

It is always hard to supply insightful analysis of a volatile asset like Advent Technologies stock. We can notice clear areas of support and resistance though. First, the close at $3.99 on Thursday is key, because this is close to a similar close from early April. If ADN stock can overtake resistance at $4, then $6.80, $8 and $10 are the next areas for profit-taking ahead. Each of these areas has been significant between April and December of 2021. Support can be found at $2 and $1.30.

ADN weekly chart