Updated: Failed Trade Alert: NuScale Power $SMR

This post has been updated from it’s original posting. The trade failed after a slight break higher and then a close below Anchored VWAP. It is a perfect example of why using stops and smaller size in speculative trades is so important.

It also highlights how powerful of an indicator Anchored VWAP can be as the day after it closed below, a short report on NuScale was posted. If someone took the trade and adhered to stop of a close below Anchored VWAP, then they missed the flush the next day.

I am still a huge believer in the technology, but time will tell if NuScale is a viable method of investing or trading in the space.

Ladies and gentlemen,

Please allow me to introduce you to NuScale Power. (Ticker Symbol: SMR)

$SMR is a clean energy play in the nuclear space. Nuscale’s ticker symbol of SMR stands for “small modular reactor” which you are going to be hearing a lot about in the coming years. While it is a new technology, it has already obtained US regulatory approval.

Nuclear Physicist EXPLAINS - What are SMRs? Small Modular Reactors - Video

Friday’s close gave confirmation of the Capitulation Day on Oct 3rd for . It finished the day up 22.86% with increased volume of 1053% on news that it will provide power to Standard Power facilities in Ohio and Pennsylvania to energize their data centers.

Standard Power Chooses NuScale’s Approved SMR Technology and ENTRA1 Energy to Energize Data Centers - Article from businesswire regarding the announcement.

These announcements typically come in bunches, so watch for more new contracts, announcements, and/or upgrades in the coming weeks.

I love the look of on the daily and weekly charts as this is one way in which new long-term trends begin.

**Below is for entertainment and educational purposes only and is NOT investment advice.**

The way in which a person can determine a proper amount of risk in this specific trade is to decide what the biggest loss they would be perfectly acceptable in taking. This means that if that whole amount is lost it would not affect them in the slightest and they would still be interested in giving it another go with the same stock or another in the future. (This is crucial.)

As this is still speculative, take 1/3 of that number and multiply it by $1, in this instance. That will give the number of shares for an initial purchase.

If a trade is initiated around where it closed on Friday, $5.75, a stop should be immediately set around around $4.42. Then look for a close below AVWAP (Anchored Volume Weighted Average Price) from the low to close out the position. Anchored VWAP is indicated by the light blue line on the daily chart above, and moves with the daily price action.

This is still highly speculative, so there is no need to over do it with risk as that would be counterproductive.

I am looking for to get above $6.71 quickly. If it does, it would be a good time to raise the stop and be prepared for a 25-50% retracement from the bottom. Should that happen and it then holds a higher low, I would look to add to the position and purchase more shares with the second 1/3 of the original risk. On this move, I would look for a weekly close above the 30week SMA (Simple Moving Average).

The final 1/3 can then be added after another higher low above or at test of the 30week SMA. At which point the stop should be raised again to just below the 30week SMA or Anchored VWAP off the low.

For a safer entry, a person could also wait for price to get above $6.72, then make an initial purchase on a higher low after the 25-50% retracement. This would increase the probability that SMR has indeed bottomed, and thus the odds of this trade working.

Set ups like this are what first got me interested in trading/investing. (What are the characteristics of bottoms in a stock that could potentially explode over the next year or so.) This is one way in which they begin.

No guarantees on how long this trade lasts. Could be a year, could be several weeks, could be a day.

Personally, I will simply play what the market gives. The longer the trend continues higher, the higher the timeframe I will use to look for an exit.

While I was not planning on this being my second post on Substack, this one was too good and timely to pass up.

Shoutout to my cousin, Paul, for introducing me to this company and their technology several months ago.

To summarize:

• Long 1/3 of proper risk above Anchored VWAP on the confirmed capitulation day with massive volume, a positive news catalyst, and new technology in the clean energy nuclear space.

• Look to add the second 1/3 on a retracement of ~50% AFTER price gets above $6.72. While raising the stop to a close below AnchoredVWAP.

• After price has closed above the 30week SMA, add final 1/3 on a test of the 30week. Again raising the stop to a close below AnchoredVWAP or below the 30week SMA.

• Ride the trend until it gives a reason to sell.

• I will keep a running update on this so you can follow along.

Again I reiterate:

This is for entertainment purposes only and is NOT investment advice. As a person should never trade or invest without doing their own research, controlling their risk, and using a stop (non-negotiable). It is imperative for a person to make their own decisions, be accountable for those decisions, and not be an idiot. Especially in a set up such as this which is highly speculative.

I am here to entertain, teach what I know, and continue growing into be the best market navigator I am capable of becoming. So feel free to ask any questions in the comment section or share any insights which you might have.