Shares of FuelCell Energy, Inc. (FCEL) are down more than 16% today after posting weaker-than-expected results. This comes as a disappointment to me as I was recently discussing the potential for a short-covering rally. Here's a look at where the stock stands now.

Chart Courtesy of Thomson Financial

The stock pushed into the resistance we discussed and ticked just above it ahead of the report. However, the negative reaction to the loss has quickly pushed the stock back below that zone.

Last week's commentary focused on a theory that better-than-expected numbers could spur a short-covering rally. That theory is, clearly, no longer valid so the question becomes what to look for next.

In the chart above I have added two minor trendlines at the recent lows. The bright spot to today's action is that the stock is still holding above both the lows and could, in theory, continue the pattern of higher lows. For that to play out, we would need to see buyers step in relatively soon. The selloff earlier this month was quickly met with buying demand so that scenario may not be as far-fetched as it seems. If the recent lows are violated, the pattern would be broken and the March bottom would then become the target area.

At this point, I think the overhead resistance is still the go/no-go line that needs to be passed. I think it would take a push above that hurdle to convince the shorts that buyers were fully committed to this stock.