Constellation EnergyCorporation (CEG)

Constellation Energy Corporation (CEG) EW-Analysis

Max Oen

— 2 min read
Constellation Energy Corporation (CEG) EW-Analysis
1 week

The sell-off has just begun!

Since its IPO in February 2022, Constellation Energy has shown a highly impulsive price development. The stock initially formed light blue wave 1 and wave 2, establishing the foundation for a strong bullish trend.

From light blue wave 2, the market accelerated into a powerful and extended light blue wave 3. This was followed by a relatively shallow correction in light blue wave 4, before completing the cycle with light blue wave 5. With this completion, the larger degree green wave 1 was formed.

After the completion of green wave 1, the market shifted rapidly into bearish momentum, marking the beginning of a long-term corrective phase—green wave 2.

This corrective phase unfolds in a classic three-wave structure: orange wave A, B, and C.

  • The initial sell-off following green wave 1 is identified as orange wave A.
  • From there, the market entered a recovery phase, forming orange wave B.

This wave B is classified as an overshooting wave, as it exceeded the high of green wave 1 and created a new all-time high at $412.70. However, this extension is not sustainable and does not indicate continued bullish strength.

Currently, the market is in the development of orange wave C.

After completing wave B, Constellation Energy initiated the first bearish impulses of this phase. These moves are expected to continue unfolding as orange wave C—the final leg of the correction—ultimately completing green wave 2 and concluding the broader corrective structure.

1 day

For the termination of orange wave C and the completion of the overall correction, we have defined a Fibonacci retracement zone. Within this zone, we expect the market to regain sustainable bullish momentum and initiate a new long-term uptrend as part of green wave 3.

This Fibonacci retracement zone ranges between:

  • 61.8% at $158.06
  • 78.6% at $105.34
  • 88.7% at $73.64

In alignment with our long-term outlook, we anticipate that once the market enters this retracement zone, it will provide a foundation for a strong bullish reversal. Therefore, this area represents a prime buying and accumulation zone for Constellation Energy.

Given the stock’s historically strong bullish structure, we expect a relatively fast recovery once the correction is completed, with significant upside potential.

If any structural changes occur, or once Constellation Energy reaches and activates our defined Fibonacci retracement zone, we will provide an immediate update.

Kind regards,
Monalytics

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