Will it Retest All-Time High?

Vistra Corp. (VST) stock price has been on a solid uptrend, creating higher lows since the beginning of May, rising from the support of $23. The stock price formed an all-time high at 34.28 and retraced to form a support. VST stock faced strong rejection above $34 and has currently formed support at $32.30.

The previous candle closed as a strong bullish candle with a rise of 3.43%. If the next candle can break the high of the last candle, the price might rise, retest the all-time high, and rise toward the next resistance level of $38.

On the other hand, if bears push the price below $32.30, VST stock might melt and retest the previous zone. However, the VST stock price is currently in a solid bullish momentum, and there is minimal possibility of a bearish move. Risk-averse traders should wait for the price to break and close above $34.20 before looking for buying opportunities.

Morgan Stanley Raised Price Target

On September 21, Morgan Stanley analyst Stephen Byrd expressed his positive outlook on Vistra by maintaining an overweight rating and upgrading the price target to $40, up from the previous target of $35. The company’s potential for growth and success has increased confidence in the stock.

The average portfolio weight of funds invested in Vistra is 0.40%, suggesting a rising interest in the stock. However, the institutional ownership in Vistra has decreased in the last quarter, which might raise concerns. Vistra’s cash-to-debt ratio of 0.05 is worse than 84.82% of 415 Utilities – Independent Power Producers industry companies.

Will VST Stock Continue Its Rally?

The stock price has surged above the 20, 50, 100, and 200-day exponential moving averages, suggesting bullish momentum. The 20-day EMA is acting as a support for the price.

However, the Chaikin money flow (CMF) score is showing divergence with the price action as it has plunged below the 0 mark and currently stands at -0.18, implying weakness and capital outflow from the market.

The relative strength index left the overbought region and stands at 63.81 with an upward trajectory, suggesting solid bullish momentum in the price.

The Bollinger bands have slightly expanded, indicating a rise in volatility. VST stock price has formed support at the 20-day SMA of Bollinger and is headed toward the upper band, which resides near $35.

Conclusion

Vistra’s market structure and price action are bullish and have recently created an all-time high of $34.28. The major technical indicators favor the buying side but traders should wait for the candle to close above the resistance level of $34.20.

Technical Levels

Major support: $32.30 and $30.80

Major resistance: $36 and $38

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.