Constellation Energy: #PowerStocks Series Pick Of The Week (June 2025)

Did you enjoy the month of May? President Donald Trump visited the Middle East and several other countries to strike deals. These deals brought more calm to the markets, resulting in a 6.28% rise in the S&P 500. Just as we thought this peace would continue, President Donald Trump is back at his favorite activity: imposing tariffs. This time, he's imposing an additional 25% tariff on steel, bringing the total tariff on steel to 50%, effective as of June 4. This tariff would impact numerous industries, including car manufacturing and construction, ultimately affecting the pockets of consumers. Therefore, I've picked this defensive stock as this week's #PowerStocks pick. Before I share this week's #PowerStocks pick, shall we review the performance of last month's picks?

1. CrowdStrike: No entry
2. Zscaler: No entry
3. SAP: 4.3% gain
4. Cameco: 8.4%
5. Mosaic: No entry

May was a smooth month for the markets under the Trump administration. As the S&P 500 gained 6.28% in May, the #PowerStocks performed slightly better, at 6.35%. The share price of CrowdStrike, Zscaler, and Mosaic didn't pull back deep enough, but SAP and Cameco did! Both the share prices of SAP and Cameco rose shortly thereafter, yielding returns of 4.3% and 8.4%, respectively, in just a few days. Did you enjoy the trade ideas shared in May?

Review Of Last Week's Pick Of The Week

Mosaic (MOS) was last week's stock pick. It's the world's 5th-largest fertilizer manufacturer by market capitalization, supplying countries as far as Brazil and China. After rising over 18% in just 2 weeks, the shares of Mosaic began pulling back. And that's when I thought that they could continue pulling back to around $33.50 before rising again. However, things didn't turn out that way. Will I continue waiting for this stock to pull back to around $33.50? I've shared my take in my Telegram Channel. Speaking of Telegram, my team and I will never ask you for your hard-earned money for "investments". I know and understand that the allure of high returns without effort is highly attractive. It breaks my heart when I hear of people falling for impersonation scams.

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Why Is Swing Trading Constellation Energy (CEG) Worth It?

Source: constellationenergy.com

Constellation Energy is a utilities company that supplies clean energy and renewable energy products and solutions. It's also the world's 6th-largest utility company by market capitalization. As more uncertainty is introduced to the market once again, I have a feeling that defensive stocks such as Constellation Energy could benefit. A look at its chart got me excited because its share price has been shooting upwards, defying gravity. 13 out of its 20 latest upmoves measure more than 11%, with 2 of them measuring over 50%! Here's what caught my attention: a pullback is here, presenting a fabulous opportunity to catch its next huge upmove. What's the price area I'm waiting for? Continue reading to get the details. P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs Constellation Energy (CEG)

Mar and Apr were trying months for the shares of Constellation Energy, given the turmoil that was going on in the US. Since then, love for its shares returned, sending its shares higher and higher. In this powerful uptrend, I'll be searching for a buying opportunity to increase my chances of profitability. To further increase my chances of profitability, let's compare the performance of its shares against the S&P 500. Referring to the comparison chart above, which is the stronger performer? Over the last three months, the S&P 500 has declined by 0.7%. In contrast, the shares of Constellation Energy have risen 22.1%! Because the bullish momentum present in the shares of Constellation Energy is likely to continue, I would like to buy its share to enjoy a possibly higher-than-market return. But before I buy its shares, is there more to analyze?

How Explosive Is Constellation Energy (CEG)?

Because I would like to trade the shares of Constellation Energy for the short term, I want them to explode upwards in price regularly. This will make my trading captial work hard for me. How explosive are the shares of Constellation Energy? Over the past 11 months, the share price of Constellation Energy has increased by 20 times. What did you notice about the magnitude of its upmoves? They range from 6.6% to 57.4%. And this isn't a small company. Constellation Energy enjoys a massive market capitalization of almost $96b! Knowing the market capitalization of Constellation Energy is important because a company with a small market capitalization is prone to market manipulation. In the case of Constellation Energy, I'm assured. So, is it time to buy its shares for an explosive swing trade?

Key Price Levels

Not quite yet! There's another layer of analysis to help determine whether the time to buy its shares is here. Why are there so many layers of analysis? This is done to increase my chances of profitability and reduce the chance of losing money. Everyone hates losing money. Let's identify the key price level of Constellation Energy's shares. Did you identify one at around $308? The shares of Constellation Energy have dipped slightly below its key price level (aka support and resistance zone). But hope is not lost. Its share price looks to be fighting back. If its share price can rise above $308, there's a high chance that it could continue rising. Therefore, I would like to wait for its share price to break above $308 before buying its shares to catch its next explosive upmove. Here's a pro tip: Instead of staring at your screen, consider setting a price alert on your broker's platform to be notified so that you can spend precious time with your loved ones.

Which Instrument Should You Consider Using?

  Do you ever wonder about the instrument used to trade explosive stocks? With 3 main trading instruments available - stocks, contract-for-difference (CFD), and options, you wonder which suits you best. Since stocks (as an instrument) is easy to understand, I shall focus on CFD and options. Here are the main similarities and differences: CFD works like a mirror to stocks. When a stock rises $1, its CFD rises $1. However, due to its unique pricing mechanism, your options price doesn't rise by the same amount. In fact, depending on the market conditions, the price of your options contract may even drop! Your CFD broker will charge you a finance fee for lending you money for your trade. However, no lending is required for options, so there is no finance charge. Because there's a finance charge by your CFD broker, CFD is not the ideal instrument for mid to long-term trades. On the other hand, options allow you to implement different strategies across time horizons. Both CFDs and options are leveraged instruments because they allow you to control a larger market position with a smaller amount of capital. While CFDs do not have an expiration date, options traders must pay attention to the expiration date of their options contracts. You must be thinking, "What's the beauty of trading options?" Options are like smartphones. You can choose to use a smartphone for its basic or advanced functions.

And options don't have to be all about Math and dry!

It can be made easy to understand through real-life analogies.

In the same way, you can implement basic and/or highly advanced strategies depending on your level of comfort. Options allow you to be versatile in adapting to the shifting market conditions and capturing opportunities in the process. Are you a CFD or options trader? I'm glad to be fluent in both. Finally, this is for educational purposes. Please perform your due diligence. All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.

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The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!