KULR Technology Surges 21.7% on $30M Battery Supply Deal – Is This the Catalyst for a Breakout?

Summary
• KULR Technology (KULR) surges 21.7% intraday to $4.20, driven by a $30M preferred battery supply agreement with Caban Energy.
• The stock trades 21.7% above its 20-day SMA and 4.1% above its 100-day SMA, signaling short-term bullish momentum.
• KULR acquires Caban’s Plano, Texas manufacturing assets, accelerating expansion into telecom and data-center energy storage.

Today’s explosive move in KULR Technology reflects a strategic pivot into mission-critical energy storage markets. The stock’s 21.7% surge, fueled by a $30M supply deal and manufacturing acquisition, positions the company to capitalize on surging demand for telecom and data-center backup power. With RSI at 41.38 and MACD above its signal line, technicals align with the bullish narrative.

Strategic Expansion Ignites KULR’s Surge
KULR’s 21.7% intraday rally stems from a $30M preferred battery supply agreement with Caban Energy, a renewable energy services firm. The deal, which includes acquiring Caban’s Plano, Texas manufacturing assets, accelerates KULR’s domestic production capabilities and aligns with growing demand for telecom and data-center energy storage. The acquisition strengthens KULR’s U.S. footprint, enabling it to scale production for 5G infrastructure and AI data centers. This strategic move underscores KULR’s pivot into high-growth markets, with Caban’s EaaS model further validating the long-term value of energy storage in critical infrastructure.

Batteries Sector Gains Momentum as KULR Outperforms Tesla
While KULR surges 21.7%, Tesla (TSLA) declines 2.5% intraday, highlighting divergent momentum within the batteries sector. KULR’s focus on mission-critical energy storage for telecom and data centers contrasts with Tesla’s broader EV and grid storage ambitions. The sector’s recent activity, including Duke Energy’s $100M battery projects and sodium-ion advancements, signals robust demand for specialized storage solutions. KULR’s targeted expansion into telecom infrastructure positions it to outperform peers reliant on broader market trends.

Options and Technicals: Capitalizing on KULR’s Breakout Potential
• 200-day SMA: $3.56 (below current price); RSI: 41.38 (neutral); MACD: 0.0083 (bullish).
• Bollinger Bands: Upper $3.78, Middle $3.33, Lower $2.88 (price near upper band).
• Key Levels: Support at $3.55–$3.57 (30D support), resistance at $4.23 (intraday high).

KULR’s technicals suggest a short-term bullish trend, with RSI in neutral territory and MACD above its signal line. The stock’s 21.7% surge has pushed it 33.2% below its 200-day SMA, indicating potential for a rebound. Two top options contracts stand out for aggressive positioning:

1. KULR20260220C4 (Call Option):
• Strike Price: $4.00; Expiration: 2026-02-20; IV: 134.32% (high volatility); Leverage Ratio: 5.22%; Delta: 0.6276 (moderate sensitivity); Theta: -0.0110 (rapid time decay); Gamma: 0.2091 (high sensitivity to price movement).
• Payoff Calculation: At a 5% upside (ST = $4.41), payoff = max(0, $4.41 - $4.00) = $0.41 per share. This contract offers high leverage and gamma, ideal for a continuation of the bullish trend.
• Why It Stands Out: High IV and gamma make this call option responsive to price swings, while moderate delta balances risk and reward.

2. KULR20260220C4.5 (Call Option):
• Strike Price: $4.50; Expiration: 2026-02-20; IV: 106.51% (moderate volatility); Leverage Ratio: 9.28%; Delta: 0.4866 (moderate sensitivity); Theta: -0.0093 (moderate time decay); Gamma: 0.2779 (high sensitivity to price movement).
• Payoff Calculation: At a 5% upside (ST = $4.41), payoff = max(0, $4.41 - $4.50) = $0. This contract is at-the-money, offering high leverage and gamma for a breakout scenario.
• Why It Stands Out: The 9.28% leverage ratio and high gamma make this contract ideal for aggressive bulls expecting a sharp price move.

Trading Setup: Aggressive bulls should consider KULR20260220C4 for a continuation trade, targeting a push above $4.23 (intraday high). A 5% upside scenario projects a 10.25% return on the call option. For a higher-risk, higher-reward play, KULR20260220C4.5 offers 9.28% leverage but requires a stronger move to $4.50 to generate payoff. Both contracts benefit from KULR’s elevated IV and gamma, amplifying returns in a bullish environment.

Backtest KULR Technology Stock Performance
The backtest of KULR's performance after a 22% intraday increase from 2022 to now shows mixed results. While the stock experienced a maximum return of 3.18% on January 17, 2026, the overall win rate for 3-day, 10-day, and 30-day periods is relatively low, with returns of 0.43%, 1.34%, and 1.61%, respectively. This suggests that while there is potential for gains, the stock's performance is also accompanied by significant volatility and inconsistent short-term gains.

KULR’s Breakout: A Strategic Inflection Point
KULR’s 21.7% surge on the $30M Caban deal and manufacturing acquisition marks a strategic inflection point. The stock’s technicals—RSI in neutral territory, MACD bullish, and Bollinger Bands near the upper band—suggest a continuation of the rally. The options market reflects high conviction, with elevated IV and gamma in key call contracts. While Tesla’s 2.5% decline highlights sector divergence, KULR’s targeted expansion into telecom and data-center storage positions it to outperform. Investors should monitor the $4.23 intraday high as a critical resistance level. A break above this could trigger a retest of the 52-week high at $21.76, but near-term focus remains on $4.50. Action: Buy KULR20260220C4 for a continuation trade, or KULR20260220C4.5 for a high-leverage breakout bet. Watch for a $4.23 close to confirm momentum.