CEG bull thesis: nuclear leadership + Google AI deal; price could reach $400 if it clears $325 resistance.

Constellation Energy is the first of them. Of course, it has that huge deal it signed with Google that gave it a significant boost, and its shares have declined slightly today.

Yes, when you look at Constellation, you find it is one of the largest producers of electricity in the United States, specifically one of the largest producers of nuclear power plants.

The main advantage of nuclear power is its ability to produce enormous amounts of electricity almost around the clock without interruption. When you think about wind power, solar power, or other methods of generating energy, you find that they depend on weather conditions.

There are external factors that may affect it, while nuclear energy is characterized by long-term reliability.

That's why I admire her. I have struck a deal with Google for 20 years to supply its AI facilities with a megawatt nuclear power delivery system or an energy storage system . Other facilities are likely to join this system and require power.

Therefore, this trend is not going to end anytime soon. We all know that we need more energy, and this company is a leader in this field.

From a technical standpoint, I know Kevin will analyze it , but the stock has built a good base around the $250 level. Therefore, I like the presence of short- term support, at least for the time being, and the potential for the stock to rise .

In fact, if we look at this time last year, we saw the stock trading at around $400. We had a double top pattern. Its rating was very high, especially for an energy production company.

We began to see a gradual downward movement as the price stabilized. The price fell slightly below the 20-day moving average, then the 50-day moving average, and finally the 200-day moving average .

But buyers were able to enter at around $250 . We saw that on February 5th when we tried to achieve a slight recovery. We came back, retested the 250 level, and since then we have been recording higher lows most of the time.

Now, I don't consider this a model for a complete rule yet . The only reason is that we still need to overcome several levels of resistance. Level 307 will be the first level we need to be able to break through and close above.

Today, we actually reached the 306.99 level three times before we started to notice heavy selling. So, the price didn't perform well today, but let's see if we can take advantage of the 200-day moving average.

If we can break through the 307 level, we will reach 325, and then we will see the full base effect that is actually happening to the stock.

Now, the Relative Strength Index (RSI) was in a good upward range, reflecting positive price momentum. The MACD indicator is perhaps the most bullish indicator for this stock. A significant rise above the 26-day exponential moving average will be observed, at least on the daily chart.

On the weekly chart, we can observe a pattern similar to what has happened over the past three years. We have witnessed a strong upward pattern . This means there is a positive trend, but we will see some fluctuations in the stock price .

This is what we have already observed. We are currently experiencing a slight pullback, with the price testing the 50-week moving average. The MACD indicator on the weekly chart still shows the 12-day exponential moving average above the 26-day exponential moving average, which is a positive indicator.

It is best for the price to rise above the zero line to achieve further gains . But I think that if this level is broken and the stock reaches approximately 30325, it is likely that the stock price will reach $400 within the next two months.

Yes, of course. The 325 level represents a clear resistance. If we can break through it, we will likely reach 400. But as a trader, I don't like to have profit dependent on the fluctuations of the stock price.

Therefore, I prefer to look at this option from the perspective of a bullish call option selling strategy. If you buy an option with an execution price of 240, you will incur a loss of approximately two dollars.

If you sell an option with an execution price of 250, both of which expire on November 20, i.e., for 43 days, you will receive a profit of $1.50. $1.50 may not seem like a large sum mathematically, but when you think about it, risking $10 for a potential $1.50 profit means a possible return of 10%.

The possibility of the stock price dropping by $50 should also be considered. Therefore , in the event of the fluctuations that KG talked about, the stock price may drop $50 before approaching the loss zone.

You have 43 days , a $50 safety margin , and you risk $10 to achieve a 10 % return within 43 days. The stock price may rise, remain the same, or even fall 50 points, yet you may still be able to make a profit. This is the method I will follow in this case.

Okay, we have an earnings announcement event during this period. We have the earnings report on November 9, but we also have just over 90% of the analysts covering Constellation currently have a positive outlook , with a buy recommendation or equivalent before the report is released.