Watch These Vistra Stock Price Levels as AI Energy Play Continues to Slide

Shares of nuclear power provider Vistra (VST), which has become a favorite of AI investors, fell Thursday for the third straight day.

AI plays such as Vistra have been under pressure this week after the chairman of e-commerce giant Alibaba (BABA), Joe Tsai, reignited concerns over AI spending, cautioning investors on Tuesday about an AI data center bubble.

Vistra was one of the biggest gainers in the S&P 500 last year—rising about 250%–amid surging demand for electricity to power energy-intensive AI infrastructure. However, since hitting a record closing high in late January, the stock has fallen 38%. Shares fell nearly 4% on Thursday to around $119.

Below, we break down the technicals on Vistra’s chart and identify major price levels that investors may be watching.

Pennant Pattern Breakdown Signals Further Selling

After finding buying interest just below the 200-day moving average (MA), Vistra shares formed a pennant, a chart pattern that signals a continuation of the stock’s recent move lower.

The price broke down below the pattern’s lower trendline on Wednesday, potentially setting the stage for further declines. Moreover, the stock’s recent drop coincides with the relative strength index (RSI) retreating back below the 50 threshold, indicating a resumption of bearish price momentum.

Let’s locate two major support levels on Vistra’s chart worth watching amid the potential for further declines in the stock, while also identifying important overhead areas to monitor during possible upswings.

Major Support Levels Worth Watching

A convincing close below the 200-day MA could see the shares slide to the $105 level. The stock finds a confluence of support in this location near the March low and last May’s prominent swing high.

The bulls’ failure to defend this key technical level opens the door for a decline to around $85. Investors could seek buying opportunities in this area near a trendline that connects the lower range of a consolidation period in June last year with the August peak.

This region also closely aligns with a projected bars pattern downside target when extracting the price bars comprising the stock’s sharp move lower from late February to early March and repositioning them from the pennant pattern’s breakdown point.

Important Overhead Areas to Monitor

During upswings in the stock, investors should initially monitor the $139 area. The shares may face selling pressure in this region near the high of the pennant pattern and a series of peaks and troughs on the chart stretching back to early October last year.

Finally, a volume-backed breakout above this location could see Vistra shares revisit higher prices around $170. Investors may decide to lock in profits near last November’s peak and a brief period of consolidation positioned just below the stock’s record high.

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As of the date this article was written, the author does not own any of the above securities.