CEG shows a bullish breakout and retest

Constellation Energy (CEG) has a bullish breakout and a deep retest of a January-October cup and handle pattern. This pattern favors further upside on CEG to 488 (measured move) and 540 (cup and handle target). Continuing to hold the breakout and deep retest zone from 352 to 324, which is reinforced by rising 13- and 26-week moving averages at 348-332, would keep this bullish setup intact.

A weekly close this Friday above last week's open at 367.20 would create a weekly bullish engulfing pattern, increasing the likelihood of a successful retest of the cup and handle breakout.

CEG maintains a constructive pattern relative to the S&P 500, which supports and corroborates the bullish absolute price setup highlighted above.

Chart 1: Constellation Energy (CEG) (top) and versus the S&P 500 (bottom)