CEG’s Stunning 168% Rally: Should You Ride the Momentum?

by SIACharts.com

Given that the SIA Equity Action Call remains at a high reading and U.S. equities are still the top SIA relative strength asset class, investors looking to allocate funds can benefit from strategies highlighted in the SIA risk management section of the site. One effective strategy is to focus new investments on assets currently in the "Favored" zones of their respective SIA Reports. A clipping from the SIA NASDAQ 100 Index Report highlights Constellation Energy Corp (CEG), which holds the coveted #1 position with a perfect SMAX score of 10/10.

Over the past year, CEG shares have delivered an outstanding 168% return, with 25.81% of that gain occurring in the past month, significantly outperforming the broader NASDAQ returns, as detailed in today's Equity Leaders Weekly newsletter. A closer look at the attached point-and-figure chart reveals that CEG shares have been testing the psychological $300 level for several months. Recent price action indicates that demand is taking control, and the stock could be poised for a double top and a potential all-time high at $306.29. If this level is surpassed, SIA-calculated resistance at $373.36, based on a vertical count of the prior column of X’s, may become the next target. Support levels are visible at $277.41, $241.51, and $223.11.

Additionally, the candlestick chart demonstrates that CEG shares have seen significant rallies over the past year, with a remarkable 168% gain. Support is further confirmed at the $280 and $230 levels, where notable price action has occurred. The chart also highlights a significant volume increase through 2023 and 2024, with one of the largest volume spikes occurring in the past month, further validating the strength of the buyers in both the sector and CEG specifically.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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