With the world doubling down on its efforts to eschew fossil fuels that come from authoritarian regimes, Jim Cramer told his Mad Money audience Friday night that it may be time to take a second look at nuclear power with stocks like Constellation Energy Group (CEG) .
Constellation Energy is one of only three pure-play nuclear operators in the U.S., making it a rarity for fund managers. 86% of Constellation's energy stems from nuclear power, where it operates six plants in Illinois, three in New York, two in Pennsylvania and also in Maryland and New Jersey.
With natural gas prices soaring, nuclear has become more competitive, and Constellation is a consistent grower with a small dividend that makes it extra attractive.
Let's check out the charts and indicators.
In this daily bar chart of CEG, below, we can see that prices have traded higher in recent weeks. CEG is trading above the short 20-day moving average line.
The daily On-Balance-Volume (OBV) line shows some improvement and the Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this daily Japanese candlestick chart of CEG, below, we see a positive picture with some upper shadows above $54. A close above $56 will refresh the uptrend.
In this daily Point and Figure chart of CEG, below, we can see a potential upside price target in the $62-$63 area.
Bottom line strategy: We do not have a lot of price history to work with but so far things are positive and I would trade CEG from the long side. A move above $56 will be a positive development.
