On Sept. 5, 2020 ($14.18), we identified a large, multi-year trading range mostly between $10 and $17 (dashed lines) and suggested that a rise above $16-17 would signal a breakout and the start of a new major up-leg. Following this report, Cameco (Friday’s close $20.92) rose to a high of $16.71 (A), pulled back toward its 40wMA (B) and recently rose to a high of $21.26 to confirm a breakout (C).
Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the bullish status. There is good support near $15-16; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of $22 and $24. The large trading range (dashed lines) supports higher targets.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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