CCJ cup & handle Breakout to 65 & 70+
Updated
Cameco Corporation (CCJ) is currently displaying a classic cup and handle pattern, a bullish continuation signal. Here’s a breakdown of the pattern and what to watch for:
Cup and Handle Breakdown:
The Cup:
A rounded base formed between April 2024 and October 2024, with the left and right peaks near $58.72 and a low around 46.76.This symmetrical cup formation indicates accumulation after a downtrend, with buyers gradually gaining strength.
The Handle:
After testing the $58.72 resistance level, the stock pulled back slightly to form a handle, consolidating around $55.66.
Handles are characterized by lower highs and decreasing volume, setting the stage for a breakout.
Volume:
Volume has declined during the handle formation, a textbook signal of the pattern. Look for a volume spike to confirm the breakout. Breakout Level (Rim of the Cup): $58.72
Projected Target: Add the cup depth to the breakout level: $58.72 + $11.96 = $70.68
Profit Targets:
First Target: $65.00
Second Target: $70.68
Bearish Contingency:
If the price breaks below $55.66, the pattern is invalidated, and CCJ may test lower levels.
Cup and Handle Breakdown:
The Cup:
A rounded base formed between April 2024 and October 2024, with the left and right peaks near $58.72 and a low around 46.76.This symmetrical cup formation indicates accumulation after a downtrend, with buyers gradually gaining strength.
The Handle:
After testing the $58.72 resistance level, the stock pulled back slightly to form a handle, consolidating around $55.66.
Handles are characterized by lower highs and decreasing volume, setting the stage for a breakout.
Volume:
Volume has declined during the handle formation, a textbook signal of the pattern. Look for a volume spike to confirm the breakout. Breakout Level (Rim of the Cup): $58.72
Projected Target: Add the cup depth to the breakout level: $58.72 + $11.96 = $70.68
Profit Targets:
First Target: $65.00
Second Target: $70.68
Bearish Contingency:
If the price breaks below $55.66, the pattern is invalidated, and CCJ may test lower levels.
Trade closed: target reached
CCJ 12/06/24 65C @0.42
CCJ 11/22/24 60C @0.41
Closed out with profit....46.43% n 35.48%
The target is still valid but money is money :)
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