LEU has short squeeze potential to monitor
Centrus Energy Corp (NYSE:LEU) stock is down 4.2% to trade at $188.39, as oil prices weigh on the nuclear energy sector. The uranium stock has tumbled more than 23% so far in 2026, but the good news is that this the pullback has it testing a historically bullish trendline.
According to Schaeffer's Senior Quantitative Analyst Rocky White, Centrus stock is within 0.75 of the 320-day moving average's 20-day average true range (ATR), after remaining above it 80% of the time over the last two weeks and in 80% of the last 42 trading sessions. This signal has occurred three other times during the past 10 years, after which the equity was higher one week later all three times, with an average return of 7%. One month later, the stock was again higher every time, with an average 21.9% pop.
A move of similar magnitude would have the shares reclaiming their year-to-date breakeven level. Longer term, the equity is up 141% year-over-year. A short squeeze could help the stock return to those Oct. 16, 14-year highs of $464.25. Short interest has begun to taper off, yet the 4.39 million shares sold short account for 24.2% of LEU's total available float.
Options are looking affordable, per the equity's Schaeffer's Volatility Index (SVI) that ranks in the 22nd percentile of its annual range. In other words, near-term option traders are pricing in relatively low volatility expectations. Plus, the stock's Schaeffer's Volatility Scorecard (SVS) comes in at 96 out of 100. In other words, shares have consistently realized higher volatility than its options have priced in over the past 12 months.