Watch These Constellation Energy Price Levels as Stock Surges on $26.6B Deal to Buy Rival

Constellation Energy (CEG) shares have been on a tear, surging over 25% on Friday following the announcement of a $26.6 billion deal to acquire rival Calpine. The acquisition, which is set to create the nation's largest clean energy provider, has investors bullish on the stock's prospects. As Constellation Energy's stock price continues to climb, investors should keep an eye on key support levels to monitor potential pullbacks and identify buying opportunities.

Key Support Levels to Watch

1. $280: This level is near a trendline that links the mid-October countertrend peak with the low of Friday's breakaway gap. If the shares fail to defend this price, a pullback to around the $236 level could occur.
2. $236: This level finds a confluence of support from the prominent May low, the upper trendline of the falling wedge pattern, and the $236 level itself. Investors may look for buying opportunities in this region.

Upside Price Target

The bars pattern analysis tool forecasts an upside target of around $350 for Constellation Energy's stock, about 15% above Friday's closing price. The prior trend used in the analysis also included a breakaway gap of over 20% to a record high, indicating the stock may continue its upward momentum for several more weeks before consolidating if price history rhymes.

Institutional Investor Conviction

The high trading volume during Constellation Energy's stock price surge signals buying conviction from larger market participants, such as institutional investors and hedge funds. On Friday, January 10, 2025, the day Constellation Energy announced its acquisition of Calpine, the stock surged by more than 25% on the third highest day of trading volume since the company went public in early 2022. This high trading volume indicates that institutional investors are driving the stock's price increase.

As Constellation Energy's stock continues to climb, investors should keep an eye on these key support levels and the upside price target to identify potential entry and exit points. The high trading volume and institutional investor conviction suggest that the stock's momentum may continue, but investors should also be prepared for potential pullbacks and remain vigilant for any changes in market sentiment or fundamentals.