Constellation Energy Gains 2.75% In Three Days As Technicals Signal Bullish Continuation

Constellation Energy (CEG) rose 0.57% to $330.52 in the latest session, marking its third consecutive daily gain and a cumulative 2.75% advance over this period. This upward momentum occurred within a $328.70–$339.24 trading range on above-average volume of 2.7 million shares, suggesting persistent bullish interest near recent highs.
Candlestick Theory
The July 29 session printed a shooting star pattern—a long upper wick ($339.24 high) closing near its low—indicating rejection at psychological $340 resistance. Immediate support converges at $328 (July 28 low and July 23 close) and $321.67 (July 24 close). The three-white-soldier formation over July 25–29 signals bullish continuation potential if $328 holds. Key resistance remains $339–$340, with a breach potentially targeting the $343.23 year-to-date high.
Moving Average Theory
The 50-day EMA ($316) recently crossed above the 100-day EMA ($307), while both remain under the rising 200-day EMA ($279). This bullish alignment confirms the primary uptrend. Current price ($330.52) trades 4.6% above the 50-day EMA, suggesting robust near-term momentum. The moving average stack (50 > 100 > 200) signals intermediate strengthening, though stretched short-term spreads may invite consolidation.
MACD & KDJ Indicators
MACD shows a bullish crossover with histogram bars expanding positively, reinforcing upward momentum. KDJ’s K-line (72) and D-line (68) are approaching overbought territory (>80) but maintain upward slopes without bearish divergence. While not yet at extreme levels, this convergence suggests near-term exhaustion risk if buying pressure wanes. A KDJ bearish crossover would signal potential pullback.
Bollinger Bands
Bands expanded sharply during the July 23 surge to $343.23, reflecting volatility breakout. Price currently hugs the upper band ($338), confirming bullish strength but also indicating stretched conditions. The 20-period band midline ($322) provides dynamic support. Narrowing bands after expansion would suggest consolidation, while sustained upper-band contact may precede a mean-reversion pullback.
Volume-Price Relationship
The July 23 rally to $343.23 occurred on the year’s highest volume (3.82M shares), validating breakout legitimacy. Recent advances show volume rising on up days (e.g., July 25–29) and contracting on the solitary down day (July 24), confirming bullish conviction. Volume divergence is absent, supporting trend sustainability. The volume-weighted average price (VWAP) since July 1 sits at $315, establishing a key support zone.
Relative Strength Index (RSI)
Using a 14-day period, RSI calculates at 62—within neutral territory but ascending toward overbought thresholds. It lacks bearish divergence relative to recent price highs. While below the 70 overbought signal, its trajectory suggests growing momentum. Traders should monitor for RSI failure above 60 to assess trend health, as values exceeding 70 may necessitate a pullback to restore equilibrium.
Fibonacci Retracement
Applying Fib levels to the dominant uptrend from September 2024 ($170.96) to July 2025 ($343.23) reveals critical thresholds. The 23.6% retracement ($307) supported the July 23 close, while the 38.2% level ($295) aligns with the June consolidation base. Recent price action rejected the 61.8% extension ($351), reinforcing resistance. A decisive break above $343.23 may target the 78.6% extension ($362), while 50% retracement ($287) offers major support if bearish reversal occurs.
Confluence and Divergence Observations
Confluence appears at $327–$328, where the 50-day EMA, VWAP, and recent swing lows align to reinforce support. Bullish agreement emerges via moving averages, MACD, and volume profiles. However, KDJ near overbought territory alongside the July 29 shooting star and RSI’s approach to 70 creates short-term caution. No material divergences exist, though the Bollinger Band width hints at consolidation probability. The technical structure leans bullish above $328, with $340–$343 acting as the next decisive resistance test. A breakdown below $320 would invalidate the immediate uptrend bias.