Constellation Energy Drops 3.85% Amid Bearish Technical Signals Near Key Resistance

Constellation Energy (CEG) declined 3.85% in the latest session, closing at $368.49 after trading between $367.38 and $392.18, forming a bearish candlestick with notable upper rejection near the $390 resistance level.
Candlestick Theory
Recent candlesticks reveal critical patterns: The 10/09 session formed a bullish candle closing near highs ($383.23), but was immediately invalidated by 10/10’s long upper wick closing near lows ($368.49). This bearish engulfing pattern near the yearly high ($392.18) signals exhaustion. Key support resides at $355 (10/07 low), while resistance stiffens at $390, with secondary resistance at $392. The rejection at $392 reinforces this as a major supply zone.
Moving Average Theory
The 50-day moving average (~$340) maintains an upward slope beneath the price, suggesting near-term bullishness. However, the 100-day MA (~$320) and 200-day MA (~$280) display bullish alignment below, confirming the primary uptrend. The latest close below $370 approaches the 50-day MA—a critical test. Failure to hold could signal trend deterioration, though the longer-term MAs retain positive structure.
MACD & KDJ Indicators
MACD histogram shows fading bullish momentum, with the signal line threatening a bearish crossover below the MACD line. KDJ’s %K (72) and %D (78) have retreated from overbought territory (>80) but remain elevated. This cooldown suggests weakening momentum but lacks an oversold signal. Divergence emerges as price hit a higher high on 10/09 while KDJ formed a lower high, warning of potential reversal.
Bollinger Bands
Price pierced the upper band on 10/09 ($386.86), triggering a sharp reversion to the midline ($375) by 10/10. The 10% band width contraction preceding this move amplified volatility. Current trading near the midline indicates equilibrium, but a break below could target the lower band (~$350). Band contraction persists, suggesting impending directional resolution.
Volume-Price Relationship
The 10/10 decline occurred on elevated volume (3.05M shares vs. 2.89M prior), validating bearish conviction. Earlier rallies (e.g., 10/01 +6.63% on 2.82M shares) saw volume confirm strength, but recent advances lacked commensurate volume. This volume divergence on upswings signals weakening buying interest, undermining sustainability.
Relative Strength Index (RSI)
The 14-day RSI (65) has cooled from overbought peaks (>75) but remains above neutral. While exiting overbought territory reduces immediate reversal risk, the failure to breach 30 oversold levels during August’s pullback underscores the indicator’s tendency to linger in bullish ranges during uptrends. Current readings suggest room for further consolidation but not capitulation.
Fibonacci Retracement
Applying Fib levels to the swing low ($170.96 on 04/04/25) and high ($392.18 on 10/10/25): The 23.6% retracement ($303) aligns with the 100-day MA and April consolidation zone. More critically, the 38.2% level ($282) converges with the 200-day MA and June support. Any correction should find initial footing near $340 (psychological support) before testing deeper retracements.
Confluence and Divergence Notes
Confluence exists at $340–$350, where the 50-day MA, 10/03 low ($358.69), and psychological support overlap—a pivotal bounce zone. However, bearish divergences prevail: Price notched higher highs in October while MACD and volume diminished, and the KDJ’s lower high signals waning momentum. These contradictions against the primary uptrend warrant caution. Should $355 support fail, a retest of $303 (23.6% Fib with 100-day MA) may unfold, though the broader structure remains constructive until decisive trendline breaks.