Constellation Energy (NASDAQ: CEG) has faced a dramatic 50% crash since the start of the year. In this article we will review the recent downturn, evaluate the Elliott Wave technical framework, and highlights potential paths for growth ahead.
In a previous 2023 article, we analyzed the impulsive bullish rally that began in January 2022. This cycle completed an impressive 5-wave advance from the low, reaching its peak in January 2025. According to Elliott Wave Theory, a typical 5-wave impulse concludes with the market entering a corrective phase. This correction unfolds in sequences of 3, 7, or 11 swings before the prevailing trend resumes its course. Understanding these patterns can help anticipate potential market movements and identify strategic entry points.
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Remember, the market is dynamic, so the presented view may have changed in the meantime. You can also ask for live updates in our Live Trading Room, where our expert analysts provide next buying opportunity based on new market data.
CEG Elliott Wave Weekly Chart 04.08.2025
CEG has entered the wave II corrective phase, indicating a likely 3-wave Zigzag structure. The initial decline from the peak exhibits a clear 5-wave pattern, labeled as wave a. Following this move, a bounce in wave b is anticipated before a final downward leg in wave c completes the correction.
In conclusion, the sharp impulsive decline suggests the next bounce is unlikely to hold. CEG appears poised for further downside before the correction phase completes. Patience will be key in identifying the right buying opportunity as the market unfolds.
The preferred strategy is to consider buying the stock after it forms a 3, 7, or 11 swings sequence from the peak. Using our extreme Blue Box system will help identify the optimal entry points, providing clarity and precision in your trading decisions. Explore our system to gain deeper insights into this methodology.
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