After $900 Million Offer, I've Got a New Price Target for NuScale Power

NuScale Power SMR surged higher earlier this month after the Department of Energy offered it $900 million to develop small modular reactors. The company designs and markets these new and smaller modular reactors. This seems to be part of an "all of the above" approach to addressing the world's energy needs in the future. 

Let's check out the charts of SMR.

In this daily bar chart of SMR below, I can see that prices bottomed out in the $2 area before turning higher. SMR trades above the rising 50-day moving average line and above the bottoming 200-day line. The trading volume has been more active since March. The On-Balance-Volume (OBV) line shows us strength since the middle of April. The Moving Average Convergence Divergence (MACD) oscillator is in a positive alignment above the zero line.

In this weekly Japanese candlestick chart of SMR below, I can see the past two years of price movement. SMR was in a longer-term downtrend but staged a reversal and has rallied above the now bottoming 40-week moving average line. The weekly OBV line has been strong since February. The MACD oscillator is in a bullish alignment above the zero line.

In this daily Point and Figure chart of SMR below, I can see a "V" bottom pattern and a potential price target in the $28 area.

In this second Point and Figure chart of SMR below, I used weekly price data with a percentage change scaling. Here, the software shows us a $27 price target.

Bottom line strategy: I get ideas for stocks everywhere. From emails from subscribers. From newsletters and sell-side reports and websites. I even get ideas from friends at dinner parties. 

I was up in New Jersey this past weekend and learned about various pharmaceutical firms and SMR came up in conversation.

Aggressive traders could go long SMR around $9 risking to $6. The $28 area is my price target for now.

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