NuScale Rose 3,000%, Then Fell 70%. What Its Chart Says NowNuScale Power CorporationBATS:SMRmoomooNuScale Power Corp. SMR gained nearly 3,000% between its $1.88 low in January and its $57.42 all-time high this past October, but the next-generation nuclear-power stock has pulled back some 70% since then. Let's see what its chart and fundamental analysis say might happen next. NuScale's Fundamental Analysis NuScale makes small nuclear reactors, which many see as a future power source for data centers that will need tons of electricity for crypto mining, artificial intelligence, cloud computing and other advanced applications. SMR's pressurized-water reactors can each generate 77 megawatts of electricity, which the company can install in bulk to scale up a plant's output to meet customer needs. Many experts believe AI and other energy-intensive uses will mean that an exponential increase in electricity demand is coming, but NuScale's sales aren't there yet. The company's quarterly revenues remain in just the single-digit millions so far. Rival next-generation nuclear firm Oklo OKLO faces similar issues. That firm is developing fast-fission power plants, but has zero revenues right now. As for NuScale, the company last month reported a $1.85 Q3 GAAP loss per share on just $8.24 million of revenue. Still, those revenues were way up from the mere $475,000 that SMR reported nine months ago for Q4 2024 (which saw a $0.77 GAAP loss per share.) NuScale will next report numbers around March, with the Street currently expecting a $0.17 GAAP loss per share on $9 million of revenue. Three of the six analysts who cover the stock have narrowed their loss-per-share estimates for the current quarter, while three have revised their numbers to increase the expected red ink. But in bad news for SMR bulls, Citigroup analyst Vikram Bagri last week reiterated SMR's "Sell" rating while taking its price target down to $18.50 from a previous $37.50. (SMR was trading at $15.99 Wednesday afternoon.) Then again, TipRanks rates Bagri at zero stars out of a possible five, listing him as the 10,057th-best analyst out of the 10,173 that the site rates. NuScale's Technical Analysis Next, let's check out SMR's chart going back some two months and running through Monday afternoon: Readers will see that SMR has just spent nearly two months developing a falling-wedge pattern of bullish reversal. The stock has in recent days tried to break out of that pattern to the upside, but the results have been rather sloppy. Shares have hit sustained resistance just below their 21-day Exponential Moving Average (or "EMA," marked with a green line above at $22). That's where the swing crowd would historically come in, but they've apparently been been slow to embrace NuScale's attempted upward move. As a result, the 21-day EMA looks like the stock's pivot here, while the 200-day Simple Moving Average (or "SMA," denoted by a red line) looks like an even more significant pivot and a potential resistance level. Meanwhile, NuScale's chart is showing mixed signals otherwise. For example, the stock's Relative Strength Index (the gray line at the chart's top) is far weaker than neutral and has been for all of December so far. Similarly, NuScale's 50-day SMA (marked with a blue line) was closing in on its 200-day SMA (the red line) at last check. If the 50-day SMA moves definitively under the 200-day SMA, that's what's called a "death cross" -- a bearish technical signal. In fact, it's particularly bearish if both lines are declining when this crossover happens. Only the blue line is declining right now, but that could change at any time. Next, check out NuScale's daily Moving Average Convergence Divergence indicator (or "MACD," marked with black and gold lines and blue bars at the chart's bottom). The histogram of the 9-day EMA (denoted by blue bars) is in positive territory,which is a bullish signal. However, the blue bars are trending closer to zero. Similarly, the 12-day EMA (the black line) is riding above the 26-day EMA (the gold line), which is a bullish signal as well. Still, both lines have been well below zero since early November, which significantly diminishes the pattern's bullishness. An Options Option Option traders who are somewhat bullish on NuScale but expect it to remain range-bound based on the technical indicators might set up a bull-call spread in this scenario. That involves buying one call while selling another with a higher strike price, but with the same expiration date. Here's an example: -- Long one SMR call with a $22 strike and a March 20 expiration (i.e., after the company's next expected earnings date). This cost $2.70 at recent prices. -- Short one March 20 $30 SMR call for $1.10 at recent levels. Net Debit: $1.60 The trader here is spending a $1.60 net debit for an $8 maximum theoretical return (and a $6.40 net gain). SMR would have to be trading at $30 or above at expiration for this to occur. Conversely, the maximum theoretical loss at expiration would be the $1.60 net debit. The stock would have to be trading below $22 at expiration for that to happen. (Moomoo Technologies Inc. Markets Commentator Stephen "Sarge" Guilfoyle had no position in SMR at the time of writing this column.) This article discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. 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