Nano Nuclear Energy stock slid 8% on Thursday as the stock is heading for a critical test of price support.
Shares are now trading 45% lower than their January highs as investors have become impatient on waiting for a policy signal from the White House administration.
In December and January, investors reacted positively to headlines that the Trump administration may begin addressing plans to expand nuclear energy development. The development is in response to the increase in demand for AI data centers and the energy needed to power them.
Nano Nuclear and other nuclear energy stocks climbed to all-time highs in anticipation of regulatory announcements, but those expectations have since been left unaddressed.
Instead, investors are now increasing their fear surrounding the economic outlook as tariffs and interest rates dominate the investment landscape.
The increased fear has almost all speculative and “risk on” investment industries flagging lower.
To date, Nano Nuclear is still trading 7% higher year-to-date and 280% higher over the last six months, but the stock’s chart suggests that short-term losses may mount further.
Thursday’s selling now has the stock within 6% of the $25 price, one that investors should consider a critical “must hold” support level.
The stock tested $25 shortly on February 25 with investors reacting to the technical support level with significant buying. Shares quickly shot more than 25% higher to $31 followed by a slow shift back to their current price of $26.88.
Share prices have become more volatile during their daily sessions, suggesting that the stock is changing hands quickly between buyers and sellers.
Over the short-term, a move below $25 is likely to increase selling pressure immediately, targeting a 25% decline to $20 where Nano Nuclear shares will find significant round number support.
That said, intermediate-term momentum is in the process of shifting against the bulls.
Nano Nuclear’s 20-day moving average is shifting below the longer 50-day moving average. This “cross under” suggests that the stock is entering a negative momentum period that will pressure shares.
For the long-term outlook, Nano Nuclear shares remain in a bull market trend with a price target of $50.
The short-term picture for Nano Nuclear includes a price target of $20 as the stock suffers from continued volatility and selling pressure at the hands of the broader market activity.
