Cameco Corp. (CCJ) is probably the most visible name in the uranium space. Many natural resource and mining names have been strong in recent months and CCJ is part of that strength. Let's check out the charts.
In this daily bar chart of CCJ, below, we can see how prices have strengthened since early November. CCJ has broken out over its July highs and now trades above the rising 50-day moving average line and the rising 200-day moving average line. The trading volume has increased since early November and the On-Balance-Volume (OBV) line has moved up the past two months telling us that buyers of CCJ have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is well above the zero line, which is bullish, but it has narrowed recently and needs to be watched closer.
In this weekly bar chart of CCJ, below, we can see that prices have broken out above the highs going back to 2016. Impressive. Prices are above the rising 40-week moving average line. The weekly OBV line has been super strong since March and tells us that a lot of money has moved into this name. The MACD oscillator is bullish.
In this weekly Point and Figure chart of CCJ, below, we can see that a weekly trade at $13 was a major breakout and has opened the way to $24 as a longer-term price target.
Bottom line strategy: The long side of CCJ is attractive now. Risk to $12 on purchases. $24 is our first target for now.
