Cameco (CCJ) has been in the doldrums for years. As the big dog in the Uranium Miners dog park, the chart keeps tempting us, but it has been a swing trade only. While that is the method for investing in commodity-related stocks, Cameco really hasn't barked out a big win in a while.
A few years ago, Cameco started to restrict supply to help improve the price of Uranium. The chart has a rising trend line on the lows, and the SCTR shows the stock living in the top zone through much of last year. So if this is the start of the move after a spring pullback, could this finally be the one where Cameco finally barks out some gains?
The daily chart suggests nice price action with great volume on Friday. This does look like a nice initiation move.
Overall, CCJ looks well set up. A stop just below $10.50 suggests the trade didn't go as planned.
Good trading,
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies
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