What you need to know
- The shares of electric utility Vistra rose 8.6% Thursday. This is a good start for the new year, especially since this stock has more than tripled its value in 2024 due to investor optimism over growing AI demand.
- Stocks rose Thursday, after Constellation Energy, a fellow nuclear power generator announced it had secured two federal government contracts worth more than $1 billion.
- Vistra closed Thursday above the 50 day moving average, after a slight pullback. This may signal that Vistra’s longer-term trend of upward movement is about to resume.
- Investors should watch key overhead areas on Vistra's chart around $169 and $190, while also monitoring crucial support levels near $140 and $115.
Stocks of Vistra, the electric utility company, surged on Thursday as investors grew more optimistic about using nuclear energy to satisfy artificial intelligence’s (AI) high-energy demand.
It was announced Thursday that Constellation Energy Inc. (CEG), a nuclear energy producer, had signed two deals with the federal government worth $1 billion.
Vistra has benefitted in the last few months from the speculation that they are well placed to sign lucrative energy deals, after Constellation signed an agreement in September with Microsoft (MSFT), to supply nuclear-generated power to their data centers.
Vistra’s shares closed Thursday at $149.66, an 8.6% increase. It was a good start to the year for a stock that soared 260% in 2024, making it the second biggest gainer in the S&P 500 last year.
We will examine the chart of Vistra in more detail and highlight important levels to watch.
Stock Reclaims Moving Average of 50 Days
Vistra’s shares, which reached a record high at the end of November on a lower than average trading volume, have since retraced to their 50-day moving mean.
In recent weeks, the stock closed back above the indicator that is closely monitored, signaling a possible return to the uptrend over the longer term. The relative strength (RSI), which has its highest value since December, confirms the improving momentum of prices.
We’ll identify the key areas of overhead to keep an eye on if this stock is to continue to rise and we will also highlight two important support levels that may draw interest in the share price during periods when profits are being taken.
Keep an eye on the following areas:
Investors who want to see if the shares will continue to rise should pay attention around the $169 mark. This is a place on the graph that may provide a selling pressure overhead near the highs of the stocks.
By using the bars patterns tool, investors can estimate a potential price that is above the high record. In order to apply it to Vistra’s chart we take the most recent trending movement throughout November and position it at the low of this week. This analysis forecasts that the target price will be around $190. It assumes that the stock is in the middle of a five-swing Elliot Wave.
Important Support Levels Monitor
Investors are advised to monitor this level at first during profit-taking phases. This area is likely to be a support for the shares near the 50 day MA. It also aligns closely with the October twin peaks, and lower range of the consolidation period mid-November.
Vistra could experience a more dramatic drop, with shares falling to about $115. In this region of the chart, investors can look for opportunities to buy near similar price movements between the end of September and the beginning November.
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According to the article, as of its date of publication, the author did not hold any of these securities.
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