I don’t know a lot about Bloom Energy, which trades under the ticker BE. However, thanks to AI, I can quickly learn what the company does, who its customers are, and how its business is performing.That is useful information. But here is the question for traders: Do you need to be an expert on the company to develop a trade with a defined bias, defined risk, and defined targets?I would argue no.First, a little background.Bloom Energy makes on-site electricity-generation systems called Energy Servers. Its fuel cells convert fuels such as natural gas into electricity through an electrochemical process rather than traditional combustion. Think of them as modular power plants located at a customer’s facility.The technology appeals to businesses that need reliable electricity, including AI data centers, hospitals, and manufacturers. Bloom also produces electrolyzers, which use electricity to make hydrogen.The data-center connection is an important part of the business story. AI needs computing power, and computing power needs electricity. On-site generation can help customers address constraints in the electrical grid. However, natural-gas-powered fuel cells still produce carbon emissions. Lower emissions do not mean zero emissions.AI can also help organize the company’s financial results. The important next step is checking those figures against the company’s earnings releases.Here are Bloom Energy’s last four reported quarters. Revenue is in U.S. dollars, and both EPS measures are diluted:Revenue measures sales. Earnings per share measures profit attributable to each share. Adjusted EPS excludes certain expenses, including stock-based compensation, while GAAP EPS follows standard accounting rules. The difference matters: adjusted earnings should not be confused with the company’s full accounting profit.Those numbers tell a business story.But they do not, by themselves, tell me where to buy, where my trade idea would be wrong, or where I should look for the next target.That is where price action and technical tools come in.The fundamentals help explain the business. The technicals help structure the trade.Price reflects the interaction of buyers and sellers responding to information, expectations, positioning, and emotion. It does not perfectly reflect everything about a company. Nevertheless, it tells us where those buyers and sellers are actually transacting.Technical tools give that price action a framework.For Bloom Energy, I am looking at an hourly chart with the 100- and 200-hour moving averages, the 100- and 200-day moving averages, and Fibonacci retracement levels. Even during a volatile period, those tools have provided some useful clues.A broken floor becomes a ceilingIn the second half of July, the price broke below the 100-day moving average near $210. After falling toward $195, it bounced back toward that moving average.What happened?Sellers leaned against the level, and the price subsequently fell from around $211 to $157 in three trading days—a decline of roughly 25.6%.For a beginning trader, “leaning” means using a technical level as a reference for a trade and its risk. A seller near resistance is looking for that level to hold. If the price instead moves above it and stays above, the reason for the trade weakens.The lesson? A level that previously acted as support can become resistance once broken.A recovery is not necessarily a reversalThe subsequent recovery reached a high on August 13 just below the 50% retracement near $254.67.A 50% retracement is the halfway point of the decline being measured. Recovering half of a selloff can look impressive, but it does not necessarily mean buyers have regained control.In this case, sellers leaned near that midpoint. The price then fell toward $186 by August 24—a decline of roughly 27% from around $254.The midpoint did not guarantee a decline. It provided a reference point where traders could assess whether the recovery was continuing or running into resistance.Support gives buyers a place to define riskOn August 24, the price tested the 200-day moving average near $186.40 and found willing buyers.The price then moved toward $227 in two trading days—a gain of about $40.60, or 21.8%.Did buyers need to know every detail of Bloom’s business to consider that trade?No. They needed to recognize the support level and decide how much they were willing to risk if it failed.Buying near support does not make a trade safe. It can, however, put the entry closer to the level that would invalidate the idea. Position size and an exit plan still matter, especially in a stock capable of making large moves.What are the technicals saying today?Today, the 100- and 200-hour moving averages converged near $212.66. The price based near that area at the session low before buyers pushed it higher. At the time of writing, the stock is up approximately 7.92%.When two moving averages converge, they create a common reference area for buyers and sellers. Holding above that area supports a more bullish short-term bias. Breaking below it would weaken that view.On the topside, the next key targets are:The 100-day moving average near $249.The 50% retracement near $254.67.Getting above—and staying above—those levels would strengthen the bullish case and open the door to further upside. Stalling against them would show that sellers are still willing to defend resistance.For closer risk, I am watching $227.34. A move below that level would be an initial warning that the latest upside momentum is fading. The converged hourly moving averages near $212.66 remain a deeper reference area.In the video, I walk through those moves and explain how the same process applies from one setup to the next:Define the bias. Which side has the technical advantage?Define the risk. What price action would tell you the trade idea is wrong?Define the targets. Where is the next obstacle, and does the potential reward justify the risk?You do not need to know everything about a company to build that framework. But you should still know when earnings or other major events could create a sharp move or a price gap.Does this process guarantee a profit?No. Breaks fail. Support breaks. Resistance gives way. A stop order also cannot guarantee an exact exit price in a fast or gapping market, but knowing where you are wrong can lead to small losses when you are not right. The goal is not to predict every move correctly. The goal is to have a repeatable process: recognize the setup, size the position appropriately, limit losses when the idea fails, and give successful trades room to work.That is the educational takeaway. You do not need certainty. You need a plan—and the discipline to follow it. This article was written by Greg Michalowski at investinglive.com.