Shares of electric utility company Vistra (VST) saw a significant jump on Thursday, driven by mounting optimism over nuclear power’s potential to meet the growing energy demands of artificial intelligence (AI) technologies.
This surge follows a major announcement from Constellation Energy (CEG), a key player in the nuclear energy sector, which secured two federal government contracts worth more than $1 billion. The news has sparked renewed confidence in nuclear energy providers like Vistra, which stands to benefit from the increasing demand for energy to power AI operations.
Vistra’s stock rose 8.6%, closing at $149.66 on Thursday. This positive movement comes after the company’s stellar performance in 2024, where shares soared by an impressive 260%, making it the second-highest gainer on the S&P 500 for the year. The company has also been the subject of speculation that it could strike lucrative energy deals similar to Constellation’s agreement with Microsoft (MSFT) in September, which secured nuclear-powered electricity for the tech giant’s data centers.
Technical Analysis: Vistra’s Strong Performance and Key Price Levels
Vistra’s stock has recently reclaimed its 50-day moving average, signaling the potential continuation of its upward trajectory. After reaching a record high in late November, the stock underwent a brief correction, trading on lower-than-usual volume. However, as the new year begins, Vistra has closed above this key technical indicator, hinting that the long-term uptrend could be resuming.
The relative strength index (RSI), a measure of momentum, is also showing positive signs, reaching its highest level since early December.
Key Resistance and Support Levels to Watch
If Vistra’s momentum continues, the $169 mark will be a crucial area to watch. This price point could act as resistance, potentially putting a cap on the stock’s climb towards its all-time high (ATH). Should the stock push beyond this level, technical analysis suggests a target price of approximately $190. This projection is based on an Elliott Wave pattern, which indicates five distinct price swings, with the stock currently in the process of completing the third wave.
Investors will also need to monitor support levels, especially during any periods of profit-taking. The $140 level is a key point, as it aligns with the 50-day moving average and marks a consolidation range seen in October and mid-November. A deeper pullback could see Vistra shares fall to around $115, where support is expected near previous price action from late September to early November.
In summary, Vistra’s recent stock surge underscores growing investor confidence in nuclear energy as a key player in the future of AI-powered energy demands. With solid technical indicators, the stock’s future trajectory will likely depend on how it responds to key resistance and support levels in the coming weeks.
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