Constellation Energy Extends Slide With 7.5% Three-Day Drop As Technicals Deteriorate

Constellation Energy (CEG) declined 3.22% in the most recent session, marking its third consecutive daily loss and bringing the cumulative three-day decline to 7.51%. This downward momentum reflects heightened selling pressure and warrants a multi-faceted technical evaluation.
Candlestick Theory
The recent price action shows a significant bearish reversal pattern. The June 3rd session formed a Shooting Star (high: $342, close: $313.03), signaling exhaustion after the rally. This was followed by two long red candles with consecutive lower lows, confirming seller dominance. Key resistance now lies at $313.50 (recent breakdown level), while critical support appears near $284–$285, aligning with the April consolidation zone. A decisive close below $285 may accelerate selling momentum.
Moving Average Theory
Price has breached both the 50-day (~$295) and 100-day (~$290) moving averages during the current selloff, violating key dynamic support levels. The 200-day MA near $250 remains ascending but is distantly positioned. The cross below the 100-day MA—particularly with the 50-day MA trending downward—suggests deteriorating intermediate-term momentum. A sustained posture below $290 reinforces bearish control.
MACD & KDJ Indicators
The MACD histogram is accelerating negative territory, with the signal line maintaining a bearish crossover—consistent with strengthening downward momentum. Concurrently, the KDJ oscillator (particularly the %K and %D lines) has plunged into oversold territory (sub-20 readings). While this implies potential for a short-term relief bounce, bearish MACD divergence warns that any rebound could be vulnerable to renewed selling pressure without confirmation.
Bollinger Bands
Volatility expanded sharply during the June 3rd spike to $342, with price briefly piercing the upper band. The subsequent rejection triggered a contraction phase, with price collapsing to the lower band ($289–$290). The current position at the lower band, combined with oversold oscillators, increases the probability of a technical bounce. However, failure to rebound from this zone could signal continuation of the downtrend.
Volume-Price Relationship
The selloff was validated by elevated volume, particularly on June 3rd (10.7M shares) when the Shooting Star formed. While the following sessions saw reduced volume, the distribution pattern remains intact. Downside volume intensity exceeds preceding accumulation volumes near $310, supporting the bearish structure. Sustained selling on rising volume would invalidate rebound prospects.
Relative Strength Index (RSI)
The 14-day RSI at 26.8 resides deeply in oversold territory (<30), reflecting extreme near-term downside exhaustion. Historically, similar RSI extremes in Q1 2025 preceded counter-trend bounces. However, in established downtrends, oversold RSI levels can persist. Traders should treat this as a cautionary signal rather than a standalone reversal indicator.
Fibonacci Retracement
Applying Fibonacci to the rally from $248.27 (May 5 low) to $342 (June 3 high):
- 38.2%: $306.20
- 50%: $295.10
- 61.8%: $284.00
The current price near $290 approaches the critical 61.8% retracement at $284. This level converges with horizontal support and Bollinger’s lower band, making it a decisive technical floor. A breakdown below $284 may extend declines toward the 78.6% level ($268.40).
Confluence and Divergences
Notable confluence exists at $283–$285, where Fibonacci support, the lower Bollinger Band, and horizontal price structure align. This zone must hold to prevent accelerated deleveraging. Bullish divergence is absent among momentum oscillators, though KDJ and RSI oversold conditions signal potential for tactical stabilization. The material breach of moving averages (50-day, 100-day) diverges from the still-bullish 200-day slope, reflecting conflicting time horizon signals.
In summary, Constellation Energy exhibits fragile technicals amid a breakdown from key dynamic supports. While oversold conditions near critical $284–$285 support suggest a relief bounce may materialize, sustained trading below $290 invalidates the immediate bullish thesis. Confirmed recovery above $303 would be necessary to signal structural strength revival.