Renewable energy stock Centrus Energy Corp (NYSE:LEU) is trading 5.9% lower at $175.34 this afternoon, extending its pullback after suffering multiple rejections at the $200 level. LEU has slid 28% in 2026, but the nuclear fuel giant is now nearing a historically bullish trendline, meaning now might be the perfect time for bulls to move in.
According to Schaeffer's Senior Quantitative Analyst Rocky White, LEU is trading within one standard deviation of the 24-month moving average, after spending the previous five months above this trendline. This setup has appeared four other times over the last 20 years, after which the stock was higher three months later every time.
LEU averaged a whopping 47.3% gain after these signals. From its current perch, a move of this magnitude would put the shares just below $260 by the end of November.
Short interest has been on the rise, up 16.3% over the past two reporting periods, now accounting for nearly 27% of the stock's available float. At the stock's average pace of trading, it would take shorts six days to buy back these bets.
In the short term, options traders have been never been more bearish over the past year. This is per LEU's Shaeffer's put/call open interest ratio (SOIR) of 1.32, which sits in the 100th percentile of its annual range. Should this bearish sentiment begin to unwind, it could trigger more tailwinds for the shares.
