Important points
Oklo’s stock soared 22% to a record high on Monday as investors flocked to the nuclear energy startup backed by Sam Altman. Shares have more than doubled in the past month, with a growing consensus among analysts that nuclear energy companies will be big beneficiaries. High-tech hyperscalers are turning to energy sources to power AI data centers. The Relative Strength Index confirms bullish price momentum, but also warns of extreme overbought conditions that could lead to short-term stock declines. The bar pattern predicts the stock’s upside price target. Assuming the stock can follow a basic Elliott Wave pattern that develops five different swings, that’s about $35. Investors should watch for major support levels on the Oklo chart near $16, $12.25, and $9.50.
OKLO stock is likely to remain on the watch list after hitting a record high on Monday as investors continue to flock to the nuclear energy startup backed by Sam Altman.
Stocks have rallied over the past month as there is a growing consensus among analysts that nuclear energy companies will benefit as big tech hyperscalers turn to energy sources to power their artificial intelligence (AI) data centers. has more than doubled. Shares rose 22% on Monday, closing at $22.31.
In September, Microsoft (MSFT) announced a 20-year deal to provide nuclear power to the tech giant’s data centers, and Amazon (AMZN) and Alphabet’s (GOOGL)’s Google also recently announced plans to meet growing energy needs. Signed a nuclear power contract.
Below, we take a closer look at Oklo’s chart and use technical analysis to point out some key price levels to watch out for.
Volume confirms bullish price momentum
Oklo stock has been on a sharp upward trend since breaking out of a falling wedge on above-average volume last month. Moreover, the stock price has surged in recent trading, indicating strong buy conviction behind the bullish move.
The Relative Strength Index (RSI) confirms positive price momentum with a value above 80, but the indicator also warns of extremely overbought conditions that could lead to short-term stock declines. I’m doing it.
Let’s consider potential upside targets and identify three major support levels that could come into play during a profit-taking period.
Chart-based price target
You can predict bullish price targets by using bar patterns, a technique that predicts future movements by analyzing previous trends on a chart. In this case, we extract Oklo’s trend period from September to October and overlay the movement from the stock’s previous peak around $16.
This analysis projects a price target of around $35 and assumes the stock may be in the process of following a basic Elliott Wave pattern with five different swings.
Key support levels to look out for
During the first pullback, investors should keep an eye on the $16 level mentioned above. This area on the chart is well positioned to find support near the horizontal line connecting comparable trading levels from April to October.
A close below this level could send the stock back to around $12.25, potentially attracting buying interest near some of the peaks and troughs that formed on the chart from April to May. be.
Further decline could lead to another retest of the downside support near $9.50. This area is just below the 200-day moving average, where bargain hunters may look for buying opportunities around the July consolidation period and this month’s retracement low.
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As of the date this article was written, the author did not own any of the securities mentioned above.
