After one of its worst months Nuscale has begun to channel trade from ~$23 high to a ~$18 low. After trying to go for a breakout to the upside on heavy volume, it failed and tumbled back down to the channels lower band.
Both a bull and bear case can be made for SMR.
Bull Case:
- Bounce off of $18 support with volume
- Breaks out from $23 resistance with ~2x RVOL
- Resistance at $30 most likely, $25 on the low end
Bear Case:
- Breakdown, candle closes outside the channel
- Test of $14.3 support level, $11.6 worst case
As of now, it seems like SMR will continue to move down following the bear case partly due to technicals and partly due to the possibility of a major shareholder dilution at the next shareholder meeting. I won't go in depth but you can Google "Nuscale dilution" for more info on what's happening.
In the case that this meeting on the 16th results in no dilution, we could see a massive rally. In the case this does happen I'd be quick to take profits as Nuscale doesn't seem to have much life left in it after how catastrophic their Q3 Earnings went.
Both a bull and bear case can be made for SMR.
Bull Case:
- Bounce off of $18 support with volume
- Breaks out from $23 resistance with ~2x RVOL
- Resistance at $30 most likely, $25 on the low end
Bear Case:
- Breakdown, candle closes outside the channel
- Test of $14.3 support level, $11.6 worst case
As of now, it seems like SMR will continue to move down following the bear case partly due to technicals and partly due to the possibility of a major shareholder dilution at the next shareholder meeting. I won't go in depth but you can Google "Nuscale dilution" for more info on what's happening.
In the case that this meeting on the 16th results in no dilution, we could see a massive rally. In the case this does happen I'd be quick to take profits as Nuscale doesn't seem to have much life left in it after how catastrophic their Q3 Earnings went.
Trade closed: target reached
Nice short to 14.30 with a reentry as it was bouncing up.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.