Shares in electric utility Vistra (VST) surged Thursday amid growing optimism about the use of nuclear capacity to serve energy-intensive artificial intelligence (AI) demand.

The move Thursday came after fellow nuclear energy generator Constellation Energy (CEG) announced that it has secured a pair of federal government deals worth over $1 billion.

Vistra has benefited in recent months from speculation that it sits well placed to ink lucrative energy deals after Constellation reached an agreement with Microsoft (MSFT) in September to provide nuclear-generated electricity to power its data centers.

Vistra shares rose 8.6% to close Thursday at $149.66. It was a good start to the year for a stock that soared 260% in 2024, making it the second biggest gainer in the S&P 500 last year.

Below, we take a closer look at the technicals on Vistra’s chart and point out important price levels worth watching out for.

Stock Reclaims 50-Day Moving Average

Since setting their record high in late November, Vistra shares have undergone an orderly retracement to the 50-day moving average on lower-than-average trading volume.

More recently, the stock has started the new year by closing back above the closely watched indicator, signaling that the longer-term uptrend may be resuming. In addition, the relative strength index (RSI) confirms improving price momentum, flashing its highest reading since early December.

Let’s identify key overhead areas to watch if the stock continues to track higher and also point out two crucial support levels where the shares may attract buying interest during profit-taking periods.

Key Overhead Areas to Watch

If the shares continue to gain momentum from current levels, investors should watch how the price responds around the $169 area, a location on the chart that could provide overhead selling pressure near the stock’s all-time high (ATH).

Investors can forecast a price target above the record high by using the bars pattern tool. To apply this to Vistra’s chart, we extract the stock’s most recent trending move throughout most of November and reposition it at this week’s low. The analysis, which forecasts a target of around $190, assumes the stock may be in the process of following a basic Elliot Wave pattern with five distinct swings playing out.

Crucial Support Levels to Monitor

During profit-taking periods in the stock, investors should initially monitor the $140 level. The shares would likely find support in this area near the 50-day MA, which also closely aligns with the twin October peaks and the lower range of a consolidation period in mid-November.

A more significant drop could see Vistra shares fall to around $115, a region on the chart where investors may look for buying opportunities near a series of comparable price action on the chart between late September and early November.

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As of the date this article was written, the author does not own any of the above securities.