NYSE:CCJ may be ready to breakout.

Our stock screener has spotted CAMECO CORP (NYSE:CCJ) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an 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.

Taking everything into account, CCJ scores 8 out of 10 in our technical rating. 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.

• The long and short term trends are both positive. This is looking good!
• CCJ is one of the better performing stocks in the Oil, Gas & Consumable Fuels industry, it outperforms 85% of 379 stocks in the same industry.
• 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.
• Looking at the yearly performance, CCJ did better than 84% of all other 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.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:CCJ this score is currently 10:

CCJ has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. 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.

How to trade NYSE:CCJ?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Of course, there are many ways to trade or not trade NYSE:CCJ and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

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