Constellation Energy Stock Soars on $26.6B 2025 Deal to Acquire Calpine – Watch These Critical Price Points

Constellation Energy (CEG) shares are grabbing investor attention after a remarkable 25% jump on Friday, fueled by the announcement of a $26.6 billion acquisition of rival Calpine. This strategic move significantly expands Constellation’s presence across Texas, California, and the Northeast, combining stock and cash components while assuming $12.7 billion of Calpine’s net debt.

Highlights to Note

• CEG shares have doubled over the past year and gained 36% year-to-date, driven by rising power demands linked to AI computing resources.
• The company plans to restart the Three Mile Island Unit 1 nuclear plant in Pennsylvania to supply electricity for Microsoft’s data centers.
• Technical analysis reveals a breakout from a falling wedge pattern earlier this month, culminating in a new all-time high with strong volume support.
• Key support levels to watch include $280 and $236, critical for potential retracements.

Technical Breakdown: Falling Wedge Breakout

Earlier this month, Constellation Energy broke out of a falling wedge pattern, retraced briefly to the upper trendline, and then surged via a breakaway gap to reach a fresh all-time high on Friday. This rally was accompanied by the third-highest trading volume since the company’s 2022 IPO, signaling robust institutional buying interest.

The Relative Strength Index (RSI) is above 70, confirming strong bullish momentum but also suggesting possible short-term profit-taking due to overbought conditions.

Price Target and Support Levels

Using bars pattern analysis, which repositions price bars from the prior uptrend, the projected upside target is approximately $350 — about 15% above Friday’s close. This aligns with historical patterns where previous breakaway gaps led to extended upward momentum.

On the downside, investors should monitor the $280 support level, near a trendline connecting mid-October highs to recent lows. A failure to hold this level could lead to a pullback toward $236, where multiple supports converge, including the May swing high, the 50-day moving average, and the falling wedge’s upper trendline.

Stay alert to these critical price points as Constellation Energy navigates this transformative phase in 2024.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. The author holds no positions in the securities mentioned as of the article date.

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