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Cameco Corp - (CCO.TO) - October 20, 2023

In today’s edition of the Daily Stock Report, we are going to take a look at Cameco Corp (CCO.TO) which we last spoke about on May 24th, 2023, when it just entered the Favored Zone of the SIA S&P/TSX Composite Index Report at a price of $38.24. Cameco Corp. has risen 10 spots in the last quarter and currently occupies the 4th spot in the S&P/TSX Comp Index Report. Today the shares are at $52.61 representing an approximately 37% increase since entering the Favored Zone 5 months ago.

It seems like there is a renaissance brewing in the nuclear industry as the price of Uranium has doubled over the last 3 years. As such, the sentiment for Uranium and Uranium Producers such as Cameco Corp. is one of growing optimism as there is an expectation of a further recovery in Uranium going forward. In looking at the Candlestick chart, we see that an important inflection point materialized back in late May when the shares broke out to a new high from its Ascending triangle pattern which started all the way back to the Summer of 2021. When the shares Ascending Triangle Pattern resolved itself to the upside at a price of $40.00, we saw that a new uptrend materialize which ultimately saw the shares reach its recent high of approximately $56.00 earlier last month. A minor pullback has materialized, seeing its shares finding some support at the $50.00 area. Resistance can be found at its recent high near $56.00 while support can be found at $50.00 and, below that, the $44.00 level.

In the attached Point and Figure Chart at a 1% scale, we see the shares had broken to the upside when they closed above the past resistance level of $40.00 back in June of this year.

Then we see a steady pattern of higher highs and higher lows up until last month when the shares ran out of steam at the $55.00 area. A pullback has materialized in the last month with a couple of columns of O’s materializing and the last column of O’s breaking down by one additional row, then turning back into a rising column of X’s, a classic Bull Trap Bottom.

We are quickly approaching near term resistance at a price of $54.60 with additional overhead resistance at its most recent high of $56.25. Support can be found at its 3-box reversal of $50.42 and below that, the $48.94 to $49.43 area. With an SMAX score of 6 out of 10, CCO.TO is showing new-term strength against most asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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