In his first "Executive Decision" segment of Thursday evening's Mad Money program, Jim Cramer spoke with Joe Dominguez, president and CEO of Constellation Energy (CEG) , the power generator that accounts for a full 10% of our country's clean energy production.
Dominguez said that Constellation generates more clean energy than the next two utilities combined, thanks to its 23 nuclear facilities and hydro power plants.
The energy business has always been about balancing supply and demand, and renewable energy just can't deliver power 24 hours a day. That's what makes the next generation of smaller, modular nuclear reactors so exciting. They can meet America's needs in a clean, safe manner.
When asked about safety, Dominguez admitted that nuclear accidents have an outsized impact on public perception. Nuclear is still the safest form of energy today, and the next generation of reactors will only improve on that record.
Let's check on two charts and some indicators.
In the daily Japanese candlestick chart of CEG, below, we can see that the shares have rallied since going public in January. Not a lot of price history to work with but we can see a bottom reversal pattern earlier this month to mark the low of an April-May pullback. Prices are slightly below the declining 20-day moving average line and just below the rising 50-day line.
The On-Balance-Volume (OBV) line rose from late February to April and then moved sideways and stands only slightly below its best levels. A new high in the OBV line soon will be a positive for the stock.
In this daily Point and Figure chart of CEG, below, we can see a potential upside price target in the $73 area.
Bottom-line strategy: Traders could probe the long side of CEG at current levels risking a close below $52 for now. Our price targets are $68 followed by $73.
