CCJ Potential Breakout State Cameco $CCJCCJ Potential Breakout Analysis
Cameco Corporation ( NYSE:CCJ ) is currently showing signs of a potential breakout back into Stage 2.
Breakout Confirmation
The stock price of Cameco ( NYSE:CCJ ) is approaching a critical resistance level.
The trading volume is increasing, indicating growing investor interest.
Key technical indicators suggest a bullish momentum.
Conclusion
Cameco ( NYSE:CCJ ) is in Stage 2 breakout, showing promising signs for potential growth.
Cameco
Supercycles in commodities - i.e. Bitcoin, UraniumSupercycle - a term which is gaining popularity these days, applies to commodities. Basically what happens is surge in demand, which current supply struggles to cover, causes prices to sky-rocket from being under-valued to highly over-valued.
In my opinion Bitcoin and its' four-year cycle is the best example. The main event of the cycle is halving (halving the rewards of mining bitcoin), which is causing supply-shock and aftermath in the form of speculative bubble.
I strongly believe we are about to see a supercycle in Uranium in the following years. Spot price of that commodity is right now under-valued to such an extent Cameco (one of its largest global providers) is buying it from the spot market in order to meet the contracts and keeping some of its mines closed (waiting for the prices to rise). Currently there are about 440 active nuclear reactors and 50 being constructed (more than 10% of the actual number) mainly in China and India (respectively 16 and 6 as of March 2021). Interesting pair, isn't it? If the rest of the world does not want to stay behind they will have no choice but to follow that direction.
Nuclear energy is not opponent of wind and solar energy. It is their carbon-free companion versus the coal.
Technicals:
We are confirming the falling wedge break-out right now. If price action will succeed to do so, there might be rally much quicker than I expected when I first opened position.
The 1. Chapter of Cameco - Long - It shines and its dangerous Long scenario for Cameco.
Fundamentals:
Second biggest Uranium producer in the world. Based in Canada. While Russia (on Position 6 ) and Ukraine (Position 9) are fighting a war + sanctions against Russia.
TA:
Could see something like the orange arrow happening. A far safer approach would be to wait for a break of Level 1. However as i´m willing to hold this position for quite some time + watching my risk management.
Requirments:
- none
Invalidation:
- none. Willing to hold it for a long time.
- Would be considering partially closing my position if price went lower than the yearly open and generating lower swings.
Good luck
CCJ Cameco Corporation Options Ahead of EarningsAnalyzing the options chain and the chart patterns of CCJ Cameco Corporation prior to the earnings report this week,
I would consider purchasing the 34usd strike price Calls with
an expiration date of 2023-8-4,
for a premium of approximately $0.95.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Cameco Testing Upper Triangle Line
Cameco Stock Price Analysis - Triangle Pattern Breakout and Potential Price Support
Weekly Chart Breakout: Cameco ( NYSE:CCJ ) has made a significant move on the weekly chart timeframe with a breakout from a triangle pattern. This bullish pattern breakout suggests the potential for sustained upward momentum in the stock's price.
Price Pullback: Following the breakout, Cameco's stock price has retraced back to the upper line of the triangle pattern, which now acts as a crucial support level. Traders and investors will closely watch this area as it may provide a strong foundation for the stock's next move.
RSI Analysis: Assessing short-term momentum, the Relative Strength Index (RSI) indicator provides valuable insights. Currently, the RSI for Cameco appears to be in a neutral zone, suggesting a balanced market sentiment. Traders will monitor for any potential divergences or significant shifts in RSI to gauge potential price movements.
PPO Indicator: Furthermore, the Percentage Price Oscillator (PPO) serves as a valuable tool in short-term analysis. A positive PPO indicates upward momentum, while a negative PPO suggests potential downward pressure. Traders will observe for convergences or divergences in the PPO, as it may signal changes in the stock's direction.
Keep an Eye On: As Cameco's stock price retraces to the upper line of the triangle pattern on the weekly chart, traders and investors will pay close attention to price action for confirmation of support. A bounce from this level could validate the breakout and potentially lead to further upward movement. However, market dynamics can shift rapidly, so caution and ongoing analysis are essential.
Technical analysis provides insights but is not definitive. It's crucial to consider other factors, including fundamental analysis and broader market conditions. Always conduct your own research and seek professional advice before making investment decisions.
Cameco... Still GoingCameco continues to gain in price as spot uranium moves higher. We are seeing textbook breakout out of a triangle pattern with Cameco on pace for its highest monthly close since February of 2011.
Lower PPO indicator is in the process of a bullish cross of the green PPO line above its purple signal line. Both of these lines trending above the 0 level indicates that the overall momentum behind price is bullish, and with the bullish cross of the two lines it means that the short-term momentum is shifting back to positive as well.
Lower TDI indicator shows the green RSI line back in the upper half of the Bolling Bands which indicates a shift back to positive price trend. The green RSI above 60 indicates that the bullish trend is increasing, and as long as the green RSI continues to trend between the 40-80 levels going forward the longer trend behind price will be considered bullish. This is from the Cardwell RSI strategy which is one of the best methods for reading the RSI if you aren't already a fan of the Cardwell RSI.
Cardwell RSI: youtu.be
The nuclear movement has a fan in Oliver Stone who recently created and released a documentary about the need for nuclear power: www.nuclearnowfilm.com
Cameco... Watch It GoThe second largest mining company in the world has one of the best looking charts out here when it comes to commodities. Price is currently breaking up and out of a pennant pattern, and lower indicators show that trend and momentum behind price support the move higher.
Train is leaving the station soon, load up now and add more at each stop.
Uranium Cameco CCJ - Bears are still in control
Cameco has been in chop fest, but I think we will continue to sell off into the next year.
I said on the week of 9-11-22 the bears take control and it has not failed. Now bears need to take out $20 to get the real momo.
Year of the correction - Gann Theory
Stay vigilant!
Getting through recession before Cameco (uranium) bounces?In prior 2008-09 recession, Cameco massively underperformed.
In a high volatility regime for stocks (VIX > 20), equities overall tend to do poorly.
The arc (a @northstar badcharts favorite) suggest another touch down before resuming its uptrend.
CCJ: Potential Gap Fill to UpsideCCJ's price action seeing responsive participants with alternative energy leading the market amidst heightened oil prices. While key levels on acute time frames are being tested by both buyers and sellers, CCJ's weekly optics present continuous range extension. While price action has begun to pierce a gap previously seen from April 2011, KL of 28.45 would be more indicative of reclaim in higher value areas (30.71) ; Continuation into mid 30's would materialize a cup and handle pattern on the Weekly// Technical analysis reflects MACD cross, price action over key moving averages, and a high correlation regression channel on the daily time frame. Bias is long on premise of global events related to commodity and tensions in Europe// ATR: 1.49,Beta: 1.01
CCJ URA Uranium Bulls running with itI like the idea of going long CCJ April 26 calls or a 26/28 debit spread with more time.
Uranium bulls have defended the trendline support and nice volume with technical indicators and moving averages implying more upside on a strong day already today.
Stop is below 20 day moving average (black line).
Uranium - Is it getting ready for yet another rally? Over the past two years, the uranium sector has been experiencing a deficit on the supply side which led to a surge of more than 300% in the price of Global X Uranium ETF. The situation was even further exacerbated when in January 2022 Kazakhstan, world's largest producer, saw civil unrest spreading across the country. We foresee the deficit in the uranium market to be persistent throughout the whole year 2022 which we expect to have a positive impact on the price of this yellow metal. Recently, URA ETF saw bullish developments taking place on the daily time frame which possibly sets it for another rally.
Top ten biggest producers of uranium by country (2020):
1. Kazakhstan = 19 477 tonnes (approximately 41% of world supply)
2. Australia = 6 203 tonnes
3. Namibia = 5 413 tonnes
4. Canada = 3 885 tonnes
5. Uzbekistan = 3 500 tonnes
6. Niger = 2 991 tonnes
7. Russia = 2 846 tonnes
8. China = 1 885 tonnes
9. Ukraine = 744 tonnes
10. India = 400 tonnes
Meanwhile, the U.S. produced only 6 tonnes of uranium in 2020 which leaves it heavily dependent on foreign producers.
Technical analysis - daily time frame
RSI is very bullish. MACD is bullish, though it still remains in the bearish territory. Stochastic is bullish. DM+ and DM- performed bullish crossover recently. However, ADX contains low value which suggests no trend is currently present in URA. Overall, the daily time frame is bullish.
Illustration 1.01
Picture above depicts the daily chart of the URA ETF. It also shows resistance at slope. We will observe price action closely and we will look whether it manages to break above the resistance. If breakout occurs, then we expect such a phenomenon to strongly bolster the bullish case for the URA ETF.
Technical analysis - weekly time frame
RSI continues to develop bearish structure. However, it already reversed which is bullish. We will watch whether it will manage to break its bearish structure. MACD is bearish but it shows first signs of flattening. Stochastic oscillates in the bearish territory, however, it points to the upside at the moment. DM+ and DM- show bearish conditions in the market. ADX suggests a lack of prevailing trend. Overall, the weekly time frame is bearish but signals very weak or no trend at all.
Support and resistance
Major resistance lies at 31.60 USD. Short-term resistance sits at 23.26 USD. Resistance 1 is at 26.37 USD and Resistance 2 at 28.72 USD. Resistance 3 is at 29.77 USD. Short-term support sits at 21.72 USD. Support 2 can be found at 17.23 USD.
Please feel free to express your own ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.
Cameco - UraniumWe like the uranium play and we are doing it through Cameco. Sell target at 1.618 Fib level.
We are not early to this play, it has been underway for quite a while. We may be approaching the top, but we want to squeak a bit more out of it.
Other plays are the Sprott Physical Uranium Trust and URNM .
Fundamentally, Sprott is cornering the physical market.
adventuresincapitalism.com
Get some!
Uranium Sector UpdateSince I get a lot of questions about my UUUU positioning, I thought I would take a moment to see what the wider sector looks like. Keeping it simple looking at CCJ as the big papa.
Looks like there is some time left for correction into August. Timing is not reliable here, but the levels are significant.