• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Basic Materials

Uranium Stock Cameco Heats Up

A closer look at CCJ after its Wall Street upgrade.
By BRUCE KAMICH
Jan 12, 2017 | 08:15 AM EST
Stocks quotes in this article: CCJ

Yesterday we talked about three overlooked and unloved uranium plays here in Kamich's Korner. One of those companies was Cameco (CCJ) . Cameco was upgraded at a major sell-side shop so it is worth looking at the charts again and give some upside price objectives.

Maybe "yellow cake" will get some attention going forward. Meanwhile, let's examine the charts and indicators.

Looking at this updated one-year daily bar chart of CCJ, above, we can see the turnaround since October. Prices moved steadily higher in November and December and this year in January someone really stepped on the accelerator. Prices are above the rising 50-day moving average line and above the still-declining 200-day moving average line. A bullish golden cross of these two averages could happen by the end of January. Notice how heavy the trading volume has been since early October. Traders and investors are being aggressive.

The On-Balance-Volume (OBV) has climbed sharply and steadily, signaling accumulation. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in November for a go long signal, which got a fresh bullish signal just the other day.

We turned to a five-year weekly chart of CCJ, above, to show how important I think the recent change in direction is with the breaking of a two-year downtrend. Prices are above the 40-week moving average line, which should soon flatten and likely turn positive in slope.

The OBV line on this timeframe is also very strong and the MACD oscillator gave us a cover shorts buy signal and is very close to an outright go long signal, too.

This is a long-term Point and Figure of CCJ, above. The straight-down decline last year to $7.50 looks like a "wash out" move or a climax. Prices have moved straight back to the upside. The other thing I notice on this chart is that the major area of resistance is in the $18 area and above. CCJ has a lot of room to advance, in my opinion.

Risk? I would use a sell stop below $10.50 for now

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | U.S. Equity | Basic Materials

More from Basic Materials

Commercial Metals Is Poised for an Upside Breakout

Bruce Kamich
Dec 28, 2021 11:45 AM EST

Let's review the charts and indicators.

Martin Marietta Looked Bullish Even Before Getting an Upgrade

Bruce Kamich
Dec 17, 2021 10:20 AM EST

Here's our updated trading strategy and price targets.

Masco Surges -- but Is It a Buy?

Bruce Kamich
Nov 16, 2021 1:39 PM EST

Traders and investors looking for a building products name to add to their portfolio could go long MAS around this level.

History Says Enthusiasm About Infrastructure Spending Should Be Tempered

Bret Jensen
Nov 10, 2021 8:30 AM EST

It could be a few years before construction projects that receive money from the latest federal infrastructure infusion get off the ground.

Dividend Investors Listen Up: We Are Living in a Materials World

Bob Ciura
Oct 29, 2021 11:00 AM EDT

Give your portfolio some credit and see which of these materials companies gets your interest: BHP Group, Dow Inc. or LyondellBasell.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:33 AM EDT PETER TCHIR

    Thoughts Ahead of the Fed Minutes

    Recent economic and earnings issues are convincing...
  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • 10:10 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "Market Timing for Dummies"
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login