Source: TradingView.com
Source: TradingView.com

Key Takeaways

  • Oklo shares soared 22% to a new record high Monday as investors continue piling into the Sam Altman-backed Nuclear energy startup.
  • The stock has more than doubled over the past month on growing consensus among analysts that nuclear energy-related companies will benefit from big tech hyperscalers turning to the energy source to power AI data centers.
  • The relative strength index confirms bullish price momentum, but also warns of extremely overbought conditions that could lead to near-term declines in the stock.
  • A bars pattern forecasts an upside price target of around $35, assuming the stock may be in the process of following a basic Elliot Wave pattern with five distinct swings playing out.
  • Investors should monitor key support levels on Oklo’s chart around $16, $12.25, and $9.50.

Shares in Oklo (OKLO) are likely to remain on watchlists after soaring to a new record high Monday as investors continue piling into the Sam Altman-backed Nuclear energy startup.

The stock has more than doubled over the past month on growing consensus among analysts that nuclear energy-related companies will benefit from big tech hyperscalers turning to the energy source to power artificial intelligence (AI) data centers. The stock gained 22% on Monday to close at $22.31.

In September, Microsoft (MSFT) announced a 20-year deal to provide nuclear power for the tech giant’s data centers, while Amazon (AMZN) and Alphabet’s (GOOGL) Google have also recently signed nuclear deals to meet their growing energy requirements.

Below, we take a closer look at Oklo’s chart and use technical analysis to point out several key price levels to watch out for.

Volume Confirms Bullish Price Momentum

Since breaking out from a falling wedge on above-average volume last month, Oklo’s stock has trended sharply higher. Moreover, share turnover has surged in recent trading sessions, indicating strong buying conviction behind the bullish move.

The relative strength index (RSI) confirms positive price momentum with a reading above 80, though the indicator also warns of extremely overbought conditions that could lead to near-term declines in the stock.

Let’s look at a potential upside price target and identify three key support levels that could come into play during periods of profit taking.

Chart-Based Price Target

We can forecast a bullish price target by using a bars pattern, a technique that analyzes prior trends on the chart to project future moves. In this case, we’ll extract Oklo’s trending period from September to October and overlay that move from prior peaks in the stock around $16. 

The analysis, which forecasts a target of around $35, assumes the stock may be in the process of following a basic Elliot Wave pattern with five distinct swings playing out.

Key Support Levels to Watch

During an initial pullback, investors should keep an eye on the $16 level mentioned above. This area on the chart sits well positioned to find support near a horizontal line connecting a range of comparable trading levels between April and October.

A close below this level could see the shares retrace to around $12.25, where they may attract buying interest near several peaks and troughs that formed on the chart throughout April and May.

A deeper fall may lead to a retest of lower support near the $9.50 area, a location just below the 200-day moving average where bargain hunters could look for buying opportunities around a period of July consolidation and this month’s retracement low.

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