Cameco Corp. - (CCO.TO) - December 14, 2020
Uranium producer Cameco (CCO.TO) returned to the Green Favored Zone of the SIA S&P/TSX 60 Index Report for the first time since July on Friday. The shares are currently in 11th place after climbing 5 spots on Friday and 49 positions in the last month.
Cameco (CCO.TO) shares staged a major breakout on Friday, blasting through the top of a $10.00 to $17.00 trading range where it had been stuck since late 2015, completing a long-term base and signaling the start of a new uptrend.
Initial upside resistance appears near the $20.00 round number where resistance has appeared in the past, followed by $21.50 based on a measured move up off the recent low which was near $12.50, then the $24.00 to $25.00 zone where a measured move, round number and the early 2014 peak cluster together. Initial support appears near $16.00.
Friday’s rally marked a major technical turning point for Cameco (CCO.TO) shares, which have come under renewed accumulation in recent weeks. Not only did the shares complete a bullish Spread Double Top pattern, they broke through $17.00 for the first time since 2015, completing a long-term base and signaling the start of a new uptrend.
Based on previous column highs, initial resistance may appear near $17.60, followed on trend by $19.45 based on a vertical count, the $20.00 round number/previous column high, and $12.50 based on a horizontal count. Initial support appears near $15.65 based on a 3-box reversal.
With a bullish SMAX score of 10, CCO.TO is exhibiting near-term strength against the asset classes.
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