Constellation Energy Drops 3.19% Amid Technical Resistance At $355

Constellation Energy (CEG) declined 3.19% to close at $343.57 on August 5th, 2025, following a period of significant volatility near recent highs.
Candlestick Theory
The latest session formed a bearish candle closing near its low ($343.57 vs. low $338.96), erasing most of the prior day's 4.14% gain. This suggests rejection at the $355 resistance area. A key support level emerges around $340, tested twice recently (August 1st and 5th). Conversely, $355-$358 has capped upside momentum multiple times (August 4th, July 31st), solidifying it as a critical resistance zone. The pattern resembles a short-term double top near $353-$358.
Moving Average Theory
Prices remain above the primary long-term moving averages: 200-day MA (~$245), 100-day MA (~$295), and 50-day MA (~$320.50), confirming the overarching uptrend. However, the recent close ($343.57) hovered near the 50-day MA after dipping below it intraday on August 5th. The convergence of price near the 50-day MA, coupled with the 50-day still above the 100-day and 200-day, indicates potential near-term consolidation but maintains a positive long-term bias.
MACD & KDJ Indicators
MACD (12,26,9) likely shows a recent bearish crossover below its signal line, aligning with the price pullback from highs. This suggests building downward momentum. The KDJ indicator (14-period) exhibits the %K line dropping sharply below the %D line from overbought territory (>80) following the August 4th peak, entering a bearish phase. Both oscillators currently lack clear oversold readings, hinting at potential further downside pressure.
Bollinger Bands
Bands were narrowing significantly in late July, indicating reduced volatility and often preceding a breakout. The subsequent drop below the 20-period middle band (typically the 20-SMA, approx. $333) on August 5th signals a shift towards bearish momentum. The price closing near the lower band suggests continued downward pressure is possible in the immediate term. Band expansion would confirm increased bearish volatility.
Volume-Price Relationship
The significant price drop on August 5th occurred on higher volume (3.36M shares) compared to the preceding up day (2.9M shares on Aug 4th). This above-average volume on a down day reinforces the bearish sentiment for the session. Key rallies earlier (e.g., July 16th low to July 31st high) were validated by periods of rising volume, supporting trend sustainability at the time. Current volume patterns validate the selloff.
Relative Strength Index (RSI)
Calculated RSI(14) has retreated from near-overbought levels (approaching 70 in late July) to around 56, moving away from the overbought threshold. While not oversold (<30), the decline from overbought territory supports the view of a near-term correction. Current levels are neutral, offering limited directional bias on their own but aligning with the pullback narrative.
Fibonacci Retracement
Applying Fibonacci retracement to the recent swing low (June 10th low: $287.71) to the swing high (August 4th high: $357.00) yields key levels. The 38.2% retracement sits near $332.50, the 50% near $322.35, and the critical 61.8% level near $312.20. These levels offer potential downside targets should the correction extend. The price currently rests just below the 23.6% level ($345.00). Confluence exists between the $332.50 Fib level and the psychologically important $330 zone tested in mid-July.
Confluence & Divergence Observations
Multiple indicators currently exhibit confluence near resistance ($355-$358): rejection via candlesticks, bearish MACD crossover, KDJ descent from overbought, and volume confirmation of selling pressure. Support near $340 aligns with minor prior swing lows and the 50-day MA proximity. Should this level fail, confluence of stronger support appears around $330-$333 (Fibonacci 38.2%, VWAP anchor, lower Bollinger Band). A noteworthy bearish divergence occurred in late July: price made higher highs (July 31st: $354.01, Aug 4th: $357.00) while MACD made lower highs, foreshadowing the current pullback. No significant bullish divergences are yet apparent against the prevailing short-term downtrend. The overarching long-term trend remains technically positive based on the moving average structure, but near-term weakness needs monitoring, especially below $340.