Here’s your trade on Constellation Energy ($CEG) – November 14, 2022


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What I want to show you today is Constellation Energy ( NASDAQ: CEG ). This is in the nuclear space, earnings are already out of the way. So we are looking for earnings for the first quarter of next year. Basically, dead balls in the center of the first quarter next year.

In the meantime, this thing is trending higher, it hadn’t been trading that long as an IPO and I would imagine it was a spin-off but I don’t know for sure. I don’t really research it that close on these new ones. But you can see on the weekly chart, this is in a really nice stair-stepping pattern. And then now we are getting this kind of sideways trade here, so this continues to work.

If you look at the daily chart, not exactly in a squeeze, per se, but frankly at 13 percent width on the Bollinger Bands back here, this is actually pretty “squeezey” relative to so many other stocks. And back here, this was even more “squeezey” (that’s a word that I just made up), 10 percent here. So this is a stock that squeezes and then breaks out, squeezes and breaks out. This is in the consolidation mode right now.

This is, in my view, a stock that you definitely want to track. Now, these breakouts, other than this one, these breakouts don’t tend to run a mile. First of all, breakouts aren’t working, I’ve proven that myself, and not in a good way. If you happen to miss the breakout at 96.00, I don’t think you are missing out on a whole boatload of gains. I think the stock just kind of gradually chugs higher.

What I would want to do is track this stock, just go ahead and set an alert so if the stock breaks out you get the heads-up. But then, maybe also set an alert down here so that you get an alert if the stock pulls back to this level. So what you are doing is, you are putting this thing in a box, to where right now there is no reason to buy this stock.

But if it pulls back then you want to look for some kind of firmness at 89.00, 88.00, or something like that. And then that way you can take an early entry with a stop just below last Wednesday’s low of 86.33, so maybe like right down there. That’s how I would be trading this stock, of course, you make your own decisions, that’s the way trading goes, but this is how I would trade it.

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