By Doug Busch
Every strong market theme often requires a reset before its next leg higher, and nuclear stocks appear to be moving through that phase.
The Global X Uranium exchange-traded fund is still simmering after its massive advance for much of last year. Technical signals, however, suggest that the next rally could be ahead, giving investors an opportunity to jump into select names.
Between April and October 2025, the ETF surged from the very round $20 number to $60, for a 200% gain. That move began with a bullish piercing line in the week ending April 11 and culminated with a bearish shooting star in the week ending October 17. What followed was a sharp correction, with the ETF cut in half over just five weeks. Since then, momentum has turned constructive again, with 17% gains for the past two weeks. Even after that rebound, the fund remains 10% below its most recent 52-week high, suggesting it has more room to run.
One specific nuclear play is Cameco, one of the world's largest uranium producers and a top holding in the Uranium ETF. The stock has delivered a stellar one--year return of 126%. It currently trades just 2% below its 52--week high and has surged 239% from last April's lows.
Cameco stock has started 2026 strongly, rising 10 of the first 11 trading days, and now appears far more comfortable above the very round $100 level than it did in late October. Following a 23% gap higher on Oct. 28, the stock completed a bearish island reversal with a 4% gap down on November 4. A bullish engulfing candle on Nov. 24 ended the subsequent slide, and Cameco has since broken above a cup base pivot at $110.26 on January 14. Based on the technical setup, the stock could reach $142 in the second half of the year.
But there are few other compelling nuclear names to watch in 2026 whose technicals are hinting at big gains in coming months.
Constellation Energy, the largest producer of nuclear power in the U.S., has fallen 16% so far this year. Notice the stock is starting to show weakness against the State Street Utilities Select Sector SPDR ETF since the start of 2026. The stock trades 25% off its most recent 52-week highs and has declined 12 of the last 15 sessions. Last week, the shares fell more than 10% for their worst weekly performance in nine months, creating a potential opportunity.
Constellation Energy fell 10% on Friday amid fears of potential electricity rate caps. The stock, however, had already been showing signs of distribution -- trading lower in eight of the past 12 weeks -- possibly in anticipation of the news. Round number theory has been in play, with shares oscillating between $300 and $400 since breaking into that range late last May. The stock is now back near the lower end of that band and closed last week below its 200-day simple moving average.
Importantly, the $300 level held firm last summer, and if it continues to do so, a double bottom base could be forming. The pattern began with a bearish engulfing candle near $400 on Oct. 16. One can enter here, with additional exposure added on a break above a double-bottom pivot at $380.88, should strength materialize. The stock could work its way toward $480 by year-end, representing a 56% gain from current prices. Remain bullish above $275.
Constellation Energy was trading around $298 Tuesday.
BWX Technologies, a classic "picks-and-shovels" play in the nuclear space, is up 78% over the past year and has already gained 26% in 2026. The stock is trading just 1% below its all-time highs, and I highlighted it in a bullish light last summer. When BWX finds its stride, it can accelerate quickly, as evidenced by a powerful stretch in which it advanced 24 of 30 weeks from last April through the end of October.
BWX Technologies has been a standout relative to its industrial peers, as evidenced by its ratio chart versus the State Street Industrial Select Sector SPDR ETF over the past year. The 50-day simple moving average is beginning to flatten, while the stock has been above its 21-day exponential moving average since Jan. 2.
The powerful advance off the April lows culminated in a doji candle on Oct. 30, often a signal of exhaustion, which marked the start of a cup base formation with a pivot at $218.60. This is the stock's third push above the very round $200 number since mid-October, and it looks like this time might be the charm. A push toward $273 by year-end is possible, representing a 25% gain from current levels. Remain bullish above $195.
BWX Technologies was trading around $206 Tuesday.
NuScale Power Corp., a designer of small modular nuclear reactors, now trades a dismal 65% below its most recent 52-week high set last October. Following a bearish shooting star weekly candle during the week ending Oct. 17, the stock has declined in eight of the past 13 weeks. Volatility remains elevated, with shares down 54% over the past three months, yet still up 42% year to date.
NuScale Power has lagged behind its industrial peers since the start of the 2025 fourth quarter, but selling pressure appears to be exhausting. Notice the robust volume as the stock attempts to form the right clavicle of a bullish inverse head-and-shoulders pattern. This is occurring around the very round $20 level, a price point with strong memory. A prior break above a double bottom pivot at $19.78 on May 13 propelled the stock 22% higher after a well-received earnings reaction.
The steep decline last fall began with a bearish engulfing candle on Oct. 16, after a failed attempt to break above a cup base -- a reminder of the old maxim "that nothing is more bearish than a bullish setup that fails." A tactical entry here could target a move toward $32 by the end of the first quarter, representing a 60% gain, while maintaining a bullish stance above $17.25.
NuScale Power Corporation was trading around $19.25 Tuesday.
Sometimes the most powerful trends are the ones that re-emerge quietly.
Doug Busch is the senior technical analyst at Barron's Investor Circle . His technical view is added to stock picks, including those published exclusively for Investor Circle readers. A glossary of technical terms is updated regularly with new entries.
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 20, 2026 13:46 ET (18:46 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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