Constellation Energy Jumps 3.37% As Technical Indicators Signal Bullish Reversal

Comprehensive Technical Analysis: Constellation Energy (CEG)
Constellation Energy (CEG) advanced 3.37% in the latest session, closing at $380.91. This follows heightened volatility, with the stock testing key technical levels.
Candlestick Theory
Recent sessions reveal a volatile price structure. A bearish engulfing pattern emerged on 2025-10-10 (high: $392.18, close: $368.49), signaling rejection near the $392 resistance. However, the subsequent session formed a hammer pattern (low: $367.38) with a 3.30% gain, suggesting potential bullish reversal support near $367. This zone now acts as a critical short-term floor. Resistance is firmly established at $385–$387, where multiple sessions peaked (2025-10-09, 2025-10-13).
Moving Average Theory
The 50-day moving average (DMA) near $350 offers dynamic support, aligning with the hammer reversal. The 100-DMA ($325) and 200-DMA ($295) slope upward, confirming the primary uptrend. However, the price currently trades below the 200-DMA (~$380 vs. 200-DMA at $385), indicating persistent overhead resistance. A sustained close above the 200-DMA would reinforce bullish momentum.
MACD & KDJ Indicators
MACD shows a narrowing bearish divergence, with the histogram approaching zero, suggesting weakening downward momentum. KDJ exited oversold territory (K: 28 → 45; D: 22 → 38), supporting near-term recovery potential. The MACD line’s proximity to a bullish crossover may signal a trend reversal if momentum persists.
Bollinger Bands
Bands contracted sharply before the October rally, indicating reduced volatility and a coiled price spring. The breakout above the 20-period band (upper band ~$375) on 2025-10-13 confirms bullish momentum. However, the close near the upper band ($387) hints at short-term overextension, increasing pullback risk toward the midline (~$365).
Volume-Price Relationship
Volume surged 23% during the 2025-10-13 advance, validating bullish conviction. Conversely, the 2025-10-10 decline occurred on 8% lower volume, suggesting limited bearish follow-through. Accumulation appears strongest near $320–$330 (high-volume sessions in September), forming a secondary support zone.
Relative Strength Index (RSI)
RSI (14-period) rebounded from oversold (29 on 2025-10-10) to 52, crossing the midline into bullish territory. While not overbought, the swift recovery warrants caution for potential consolidation. RSI divergence was absent during recent lows, reinforcing the rebound’s credibility.
Fibonacci Retracement
Using the swing low of $170.96 (2025-04-04) and high of $387 (2025-10-13):
- 23.6% retracement: $352
- 38.2%: $322 (aligns with high-volume support)
- 50.0%: $309
- 61.8%: $307 (confluence with Jan 2025 high-volume zone)
The current price sits above the 23.6% level, with $322–$307 acting as critical demand zones if retracement deepens.
Confluence & Divergence Notes
Confluence exists at $365–$367 (hammer low + Bollinger midline + 50-DMA), offering robust support. Resistance near $385–$392 combines the 200-DMA, prior highs, and Bollinger upper band. A notable divergence occurred between price (lower low on 2025-10-10) and RSI/MACD (higher lows), foreshadowing the rebound. MACD’s lag versus KDJ’s oversold signal may reflect lingering bearish inertia but aligns with improving momentum.
Overall Probabilistic Outlook
Constellation Energy exhibits signs of bullish recovery, supported by volume-backed price action and oversold reversals. A break above $392 could catalyze a rally toward $420. However, failure to hold $365 increases downside risk to $322–$307. Given indicator alignment, the short-term bias leans bullish with a 60-70% probability of testing $392 resistance, contingent on sustaining volume momentum.