Cameco (Friday’s close $16.39) declined from $27.39 in April-2014 to $9.88 in October-2016 (A-B) below a falling trend-line (dotted line) and below its falling 40-week Moving Average (40wMA). It rose above these indicators in late-2016 to signal the end of the downtrend (C).
The stock then settled in a bullish technical pattern known as an Inverse Head-and-Shoulders formation (solid lines). A sustained rise above $17-18 would confirm the breakout.
Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the bullish potential. Only a sustained decline below ±$14.50 would be negative.
A rise above $17-18 would signal Point & Figure targets of $20 and $22. Higher targets are visible.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
Monica Rizk
Ron Meisels