CEG sets up for cup and handle breakout

Constellation Energy (CEG): On bullish Cup and handle breakout watch

We continue to like the technical chart pattern for Constellation Energy (CEG), which we highlighted in our September 13 The Stock Pulse.

CEG is in position to breakout from its cup and handle pattern dating back to late January. A decisive push above 352-357 would confirm this view and favor upside to 488 (measured move) and 540 (pattern count).

We have high confidence in this pattern while above the rising 13-week moving average near 325 and this week's low at 322.

Rising 26- and 40-week moving averages at 300-288, along with the early September handle low at 293, reinforce the overall bullish setup and offer additional support for CEG.

A developing cup and handle for CEG relative to the S&P 500 supports this bullish absolute price pattern.

Chart 1: Constellation Energy (CEG)