Media coverage of and investor interest in uranium has been increasing with the energy crisis unfolding in Europe and elsewhere, so it may not be a surprise that the charts of uranium miner Cameco Corp. (CCJ) are bullish. Let's check out Cameco's charts and indicators to see what may be ahead for its shares.
In this daily bar chart of CCJ, below, we can see that prices have been making higher lows the past 12 months. Prices are currently trading above the rising 50-day and the rising 200-day moving average lines. Trading volume has been active the past year. The daily On-Balance-Volume (OBV) shows fresh strength from early May and supports further price gains. The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of CCJ, below, we can see a base pattern around $10 and a longer-term rise. Prices are trading above the flat/neutral 40-week moving average line. There are a number of lower shadows in the $22-$20 area to mark important support. The weekly OBV line is supportive and the MACD oscillator just crossed above the zero line for a fresh outright buy signal.
In this daily Point and Figure chart of CCJ, below, we can see a durable uptrend and a potential price target in the $43 area.
In this second Point and Figure chart of CCJ, below, we used weekly price data with a five-box reversal filter. Here the software projects the $58 area as a potential price objective.
Bottom line strategy: We looked at Cameco back on March 9 and liked the charts. The charts of CCJ continue to look attractive and traders with patience should continue to probe the long side. Risk to $21 for now on new longs.
