Vistra Corp (VST)

We got a question on Vistra Corp (VST).

Vistra (VST): Double top risk on waning relative strength vs. the S&P 500

VST maintains bullish absolute and relative price trends, supported by rising 26- and 40-week moving averages (WMAs). However, momentum shows signs of fatigue, with relative strength versus the S&P 500 exhibiting a bearish divergence.

On the absolute price chart, a potential double-top is emerging from the August and September highs at 216.85-291.82. Sustained weekly closes below the rising 13-WMA at 198.54 would increase downside risk, initially targeting the 26- and 40-WMAs at 177.11–166.73 as key support.

If VST breaks lower from the double top on a move below 178 and loses the 26- and 40-WMAs, then at drop toward 140 becomes more likely.

Conversely, staying above or defending the 26- and 40-WMAs as support would keep the uptrend intact.

Bottom line: Key support levels are 178-177 to 166, but there is double top risk toward 140 if the more bearish scenario plays out on VST.

Chart 1: Vistra Corp (VST)