Constellation Energy Dips 1.63% As Technicals Signal Key 350 Support Test

Constellation Energy (CEG) declined 1.63% in the latest session, closing at $358.16 after testing a high of $371.31 and low of $355.38. This price action sets the context for the following technical assessment.
Candlestick Theory
Recent sessions show a "bearish engulfing" pattern formed on 2025-10-03 (high: $376.78, close: $360), followed by two consecutive down days, signaling short-term exhaustion after the sharp rally from $310 to $370 in September. Key support resides at $350, which held firm during pullbacks on 2025-10-01 and 2025-10-06. Resistance is established near $370–$375, evidenced by repeated failures to breach this zone in early October. A sustained close below $350 may trigger further downside toward $340.
Moving Average Theory
The 50-day moving average (near $340) recently crossed above the 200-day MA (near $315), confirming a long-term bullish structure. However, the latest close ($358.16) is testing the 50-day MA from above. The 100-day MA (near $330) acts as secondary support. While the long-term trend remains upward, the short-term trend has weakened as prices have pulled back from the $370 resistance toward the 50-day MA. A breakdown below $350 would signal a bearish shift in sentiment.
MACD & KDJ Indicators
MACD (12,26,9) has crossed below its signal line after forming a bearish divergence in late September – prices reached higher highs while MACD peaked lower. This suggests waning upward momentum. The KDJ oscillator (settings 9,3) shows the %K line at 28 and %D at 35, entering oversold territory. While KDJ implies a potential bounce, MACD’s bearish crossover and negative divergence recommend caution. Confluence exists at the oversold KDJ reading and the $350 support.
Bollinger Bands
Volatility expanded sharply during the September rally, with the price touching the upper band multiple times. Recent contraction (bandwidth narrowing 15% in two weeks) indicates consolidation. The current price sits near the lower band ($355), which historically prompted reversals (e.g., 2025-08-28). However, prolonged trading near the lower band without recovery may foreshadow a breakdown, especially if $350 support fails.
Volume-Price Relationship
The September surge saw strong volume validation (e.g., 3.36M shares on 2025-09-19 during a 2.54% gain). Conversely, the recent decline occurred on elevated volume (2.16M shares on 2025-10-07 vs. 30-day avg of 2.4M), suggesting distribution. The absence of volume spikes during recovery attempts (e.g., 2025-10-06’s 1.14% gain on below-average volume) undermines bullish conviction. High-volume breakdowns below $350 would confirm bearish control.
Relative Strength Index (RSI)
The 14-day RSI currently reads 45, down from an overbought peak of 72 in late September. While neutral now, the RSI formed a clear bearish divergence with price in September, failing to match higher price highs. RSI has room to fall before oversold (<30) conditions emerge, but a breach below 40 may accelerate selling. Historical reactions near 30 (e.g., June and August 2025) led to rebounds, but RSI is only a warning indicator and should be weighed alongside volume and price structure.
Fibonacci Retracement
Using the swing low of $279.39 (2025-06-13) and high of $376.78 (2025-10-03), key retracement levels emerge: 38.2% ($340), 50% ($328), and 61.8% ($316). The $340–$328 zone aligns with the 100-day MA and August consolidation, forming a high-confluence support area. Recent rejection at the 23.6% extension ($370) and the latest retreat highlight this level’s significance. A decisive break below $350 targets the 38.2% retracement at $340.
Conclusion
Multiple indicators converge at the $350 support: oversold KDJ, Bollinger lower band, Fibonacci alignment, and the 50-day MA. A breakdown here – particularly on high volume – may trigger a decline toward $340–$328. Conversely, a rebound holding $350 with volume recovery would reinforce the long-term uptrend. Divergences between MACD’s bearish signal and KDJ’s oversold reading create near-term uncertainty, warranting close monitoring of price action around $350. The structural bias remains cautiously bullish above $340, but failure here would indicate a deeper correction.