In powerful trends, the real edge isn’t chasing the breakout—it’s buying the pullback. That’s exactly what we’re seeing right now in one of the market’s most talked-about names in the next-gen energy space. After triggering a long-term PowerTrend ‘Buy’ signal back in May, this stock has continued to show impressive strength—grinding higher as momentum builds around its role in a rapidly evolving sector. But what has my attention today isn’t just the uptrend—it’s the pullback. Shares have come in a bit and retraced back to a sweet spot on the chart I like to call my ‘Buy Zone’. The trend is alive and kicking—and this pullback could be the launchpad for the next big surge!

Tucked inside one of the most powerful energy themes of the decade is NuScale Power Corp., symbol: (SMR)—an emerging leader in the nuclear space focused on developing small modular reactors (SMRs) that promise to redefine how clean, reliable power is delivered around the world. What’s got investors fired up isn’t just the long-term promise of nuclear—it’s the timing. With governments and private sector players scrambling to scale carbon-free baseload energy to support everything from AI-driven data centers to national grids, NuScale’s technology is gaining serious traction. As nuclear sentiment flips from controversial to essential, SMR is positioning itself at the forefront of a once-in-a-generation energy shift—and the market is starting to price that in.

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Read the chart and the pattern jumps off the screen. Each time momentum pushed price up into overbought territory, the shares took a healthy breather—sliding back inside the Keltner channel bands, catching support, and then ripping higher to fresh new peaks. We’ve just watched that exact sequence play out again: the latest overbought spike has cooled, price has drifted down into my Keltner “Buy Zone,” and the price is now sitting almost perfectly on the middle channel. In a confirmed long‑term uptrend, this is exactly where I’d begin looking to gain exposure. I didn’t want you to miss this one—because history says these pullbacks have been the springboard to the next leg of the move.

Given the strength of the trend and the pullback into an ideal entry zone, this setup is too good to ignore—but I’m not going all-in on a pure directional play. After such a strong two-month rally, there’s always the chance SMR chops sideways or consolidates a bit longer. That’s why I’m targeting a call debit spread that gives us room to be right without needing a breakout. This trade offers a potential return of 53.8%, and here’s the edge—it can hit that target if the stock is up, flat, or even down as much as 10.0% at expiration. It’s a smart, lower-risk way to stay aligned with the trend while giving the trade a wider margin for error. If you want more trades like this each week, click the ad below to check out our flagship Optioneering Newsletter—featuring Chuck Hughes’ top setups and now available for just $1 for your first month.

Wishing You the Best in Investing Success,

Chuck Hughes

Editor, Trade of the Day

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