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Cameco's Cigar Lake mine manager Rick Forbes walks down one of the mine shafts at the Cigar Lake mine site. Technical analysis shows the uranium producer is set to rise. (David Stobbe/Reuters)
Cameco's Cigar Lake mine manager Rick Forbes walks down one of the mine shafts at the Cigar Lake mine site. Technical analysis shows the uranium producer is set to rise. (David Stobbe/Reuters)

What the Charts Say

Bullish on Cameco Add to ...

Cameco Corp. declined from $44.28 to $17.61 in 2011 (A-B) and then settled in a large horizontal trading range mostly between $18 and $24 for almost two years (dashed lines). Recent price action signalled the breakout from this range and the start of a new major up-leg (C). Cameco is currently somewhat over-bought and may pull back toward $23-$23.50, but only a sustained decline below about $21 would be negative.

Point & Figure measurements provide an initial target of $29 (a 20-per-cent appreciation potential from current levels). The large trading range (dashed lines) supports higher targets.

Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.

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