In my last review of uranium names on January 13 I looked at Cameco ( CCJ) and Uranium Energy Corp. ( UEC) . I wrote that "Uranium is still a "back of the C section" story, so investors need to be patient. Continue to hold longs with stops below $21."
Well, uranium is getting more attention lately at a recent H.C. Wainwright's Annual Global Investment Conference and from Helene Meisler but it is still not a front-page story.
Let's review the charts again.
Cameco
In the daily bar chart of CCJ, below, I can see that the shares have been in a rising trend since December. The shares are trading firmly above the rising 50-day moving average and well above the rising 200-day moving average line.
The trading volume has increased modestly since May and that suggests we are seeing more investor interest. The On-Balance-Volume (OBV) line has been in a bull move since October and tells me that buyers of CCJ are more aggressive than sellers.
The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of CCJ, below, I can see a base pattern around $10 and a second level base pattern around $20. The shares have broken out of a large continuation pattern in the $20-$33 area and we are heading towards a $46 price target (the height of the pattern projected upwards from the breakout point.
The 40-week moving average line is bullish. So is the weekly OBV line and the MACD oscillator.
In this daily Point and Figure chart of CCJ, below, I can see a price target in the $43 area.
In this second Point and Figure chart of CCJ, below, I used weekly price data with a five-box reversal filter. This suggests a price target in the $88 area.
Uranium Energy Corp.
In this daily chart of UEC, below, I can see an impressive rally since May. Prices are trading above the rising 50-day line and the rising 200-day line. A bullish golden cross buy signal can be seen in early August.
The OBV line shows gains from December and supports the rally. The MACD oscillator is bullish.
In this weekly Japanese candlestick chart of UEC, below, I see a positive setup. Higher prices are likely. A weekly close above $6.50 will be an important upside breakout.
In this daily Point and Figure chart of UEC, below, I see a price target in the $9.25 area.
In this second Point and Figure chart of UEC, below, I used weekly price data with a five-box reversal filter. Here the software suggests a price target in the $14.25 area.
Bottom-line strategy: Traders who are long CCJ could raise stops to $30. If you are long UEC risk to $3.75.
Uranium has no substitute so it will be rationed by price in the months and probably years ahead.
