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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