Will CAMECO CORP breakout?

CAMECO CORP (NYSE:CCJ) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:CCJ.

Zooming in on the technicals.

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to CCJ. Although CCJ is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• CCJ is part of the Oil, Gas & Consumable Fuels industry. There are 379 other stocks in this industry. CCJ outperforms 84% of them.
• In the last month CCJ has a been trading in the 25.72 - 29.06 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• When comparing the yearly performance of all stocks, we notice that CCJ is one of the better performing stocks in the market, outperforming 84% of all stocks. However, this overall performance is mostly based on the strong move around 4 months ago.
• CCJ is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so CCJ is lagging the market slightly.

How does the Setup look for NYSE:CCJ

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:CCJ scores a 10 out of 10:

Besides having an excellent technical rating, CCJ also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 28.11. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 27.57, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CCJ in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:CCJ

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout analyzer.