Uranium gets a bad rap. Hey, I just had solar panels installed on my house, but I don't want a reactor anywhere near my backyard. While Germany and Japan may not be interested in new nuclear reactors to generate electricity, other countries such as China and India are still going full tilt. This might translate into an investment opportunity.
This long-term chart, above, of the price of uranium shows a long base and the historic rally that peaked in 2007. Prices are in their third down leg from the 2007 peak, and are showing gradual signs of a bottom.
This chart of Cameco (CCJ) is still pointed down, as prices remain below the declining 200-day moving average line. CCJ has crossed back and forth around the 50-day moving average. The On-Balance-Volume (OBV) line is flat, and the momentum indicator is showing improvement. A close above $13 will improve this chart.
In this longer-term chart of CCJ, we can see that we are close to closing above the declining 40-week moving average line. The OBV line is flat on this time frame too, but the Moving Average Convergence Divergence (MACD) oscillator is improving. Like our short-term chart, a weekly close above $13 will improve the technical backdrop.