Centrus Energy (LEU) Surges 11.9% on Strategic Expansion Pact – What’s Fueling This Volatile Move?

Summary
• Centrus Energy (LEU) surges 11.9% to $207.415, hitting an intraday high of $211.50
• Non-binding MOU with Korea Hydro & Nuclear Power sparks bullish momentum
• Technical indicators signal short-term buy despite 52-week high of $264.90

Centrus Energy’s stock has ignited a 12% rally amid a strategic partnership with South Korean nuclear firms, driven by a non-binding Memorandum of Understanding (MOU) to expand uranium enrichment capacity. The move, endorsed by U.S. and South Korean officials, has pushed LEU to its highest level since February 2025, with intraday volume surging 11.97% above average. Analysts and traders are now dissecting whether this is a catalyst for sustained growth or a short-term spike.

U.S.-Korea Nuclear Pact Ignites Centrus Energy's 12% Rally
Centrus Energy’s 11.9% surge stems from a strategic MOU with Korea Hydro & Nuclear Power and POSCO International to expand its Piketon, Ohio uranium enrichment plant. The agreement, witnessed by U.S. Secretary of Commerce Howard Lutnick and South Korea’s Trade Minister Kim Jung-kwan, aims to deepen U.S.-Korea cooperation on civilian nuclear energy. The deal also includes increasing supply commitments for low-enriched uranium (LEU) and high-assay LEU for next-gen reactors. While the MOU is non-binding, Evercore ISI’s endorsement of KHNP as a 'credible nuclear counterparty' has bolstered investor confidence, validating Centrus’s role in the U.S. nuclear supply chain.

Uranium Sector Outperforms as LEU Surges Amid Strategic Expansion Pact
The uranium sector has seen mixed performance, with Centrus Energy’s 12% rally outpacing peers. While Clear Channel Outdoor Holdings (CCO), the sector leader, fell 1.19%, LEU’s surge reflects its unique position as a U.S.-based uranium enrichment provider. The MOU’s emphasis on U.S.-Korea collaboration and federal funding requirements positions Centrus to benefit from global nuclear energy demand, contrasting with broader sector volatility tied to geopolitical and regulatory shifts.

Technical Bull Case Strengthens – Options Playbook for LEU’s Volatile Move
• MACD: -7.36 (bearish divergence), Signal Line: -3.23 (neutral), RSI: 37.48 (oversold)
• Bollinger Bands: Price at $207.415 (middle band: $202.65), 200D MA: $113.66 (far below)
• Support/Resistance: 30D: $214.58–$216.24 (key near-term target), 200D: $70.02–$73.92 (long-term floor)

Centrus Energy’s technicals suggest a short-term bullish breakout, with RSI in oversold territory and price testing the upper Bollinger Band. The 30D moving average at $212.36 acts as a critical resistance level. While no leveraged ETFs are available, the stock’s volatility makes it a candidate for directional options. However, the provided options chain lacks liquidity (e.g., LEU20260618C220 has zero turnover), limiting actionable plays. Aggressive bulls may consider holding LEU into a test of $214.58, with a stop below $192.10 (intraday low).

Backtest Centrus Energy Stock Performance
The LEU ETF experienced a significant surge, with a maximum intraday increase of 12%, leading to a total strategy return of 2,412.88% over the backtested period. This outperformed the benchmark return of 81.52%, resulting in a 2,331.35% excess return. The strategy had a maximum drawdown of 0%, a Sharpe ratio of 1.04, and a volatility of 89.87%.

Act Now: Centrus Energy’s Expansion Pact Validates Long-Term Bull Case – Key Levels to Watch
Centrus Energy’s 12% rally underscores its strategic value in the U.S. nuclear energy landscape, but sustainability hinges on securing federal funding and executing the MOU’s supply commitments. Technicals favor a near-term test of $214.58, with a breakdown below $192.10 signaling a reversal. While the uranium sector remains fragmented (CCO -1.19%), LEU’s unique positioning in the U.S. supply chain offers asymmetric upside. Investors should monitor the 30D MA at $212.36 and 52-week high of $264.90 as pivotal benchmarks. Watch for $214.58 breakout or a breakdown below $192.10 to define next steps.