Constellation Energy Corp (CEG) is having a rough Friday, with shares tumbling as word spreads about a Trump administration plan that could fundamentally change how power plants get built in one of the nation's largest electricity markets.

Here's what's happening: the administration is preparing to urge PJM Interconnection, the regional grid operator where Constellation does business, to launch an emergency auction that would let major tech companies and hyperscalers bid on 15-year contracts to build new power plants themselves.

The White House Makes Its Move

According to Bloomberg, the directive is expected to be signed Friday at the White House by the National Energy Dominance Council. Governors from Pennsylvania, Ohio and Virginia are slated to attend, which tells you this isn't a small-potatoes initiative. If it goes through, the plan could unlock as much as $15 billion in new power plant development across the PJM region.

The proposal fits into President Donald Trump's broader push to make large technology companies pay more of the electricity costs tied to the explosive growth of AI-driven data centers. Earlier this week, Microsoft Corp (MSFT) announced it would adopt a "community-first" approach by working with local utilities to ensure residents don't get slammed with higher power bills.

Rick Pederson, vice chairman and chief strategy officer at Bow River Capital, told MarketDash that data center investment could increasingly shift to states like Texas, Oklahoma or North Dakota, where power costs are lower, interconnections are faster and there is "less transactional friction."

What the Charts Are Saying

Constellation Energy is currently positioned below key moving averages, which points to bearish pressure. The stock is trading approximately 12% below its 20-day, 50-day and 100-day simple moving averages, suggesting a lack of upward momentum that should give traders pause.

The RSI sits at 45.83, which is neutral territory. This level indicates the stock isn't in an overbought or oversold condition, meaning traders should watch for potential shifts in momentum before making moves.

Currently, MACD is below its signal line, indicating bearish pressure on Constellation Energy. The stock may continue to face downward momentum unless there's a significant change in price action.

Key support sits at $302.00, while resistance is at $328.00. If the stock approaches the support level, traders should watch for a potential bounce or a breakdown, while a move toward resistance could signal a short-term recovery.

In June, the golden cross occurred when the 50-day SMA crossed above the 200-day SMA, which typically indicates a bullish trend. However, the stock's current positioning below its shorter-term moving averages suggests that this bullish signal may not be strong enough to reverse the recent downward trend.

Over the past 12 months, Constellation Energy has seen a slight decline of 2.38%. This performance reflects the challenges the stock has faced, particularly in the context of its recent price action and the broader market environment.

Currently, the stock is trading at 58.2% of its 52-week range, indicating it's positioned closer to its recent lows than its highs. This positioning suggests potential weakness and may lead traders to be cautious about entering new positions until a clearer trend emerges.

CEG Price Action: Constellation Energy shares were down 11.7% at $301.24 at the time of publication on Friday.