Uranium miner Cameco (CCO.TO) has returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report after climbing 46 spots yesterday. Cameco also moved up 9 spots in the SIA S&P/TSX 60 Index Report to 6th place.
This eleven-year chart for Cameco (CCO.TO) highlights the importance of its recent rally. The shares spent nearly all of the 2010s in a downward trend, including 5 years between 2016 and 2020 stuck in a trading range between $10.00 and $17.00.
In early 2020, the last of the selling pressure appears to have finally washed out in a brief dip under $10.00. Shortly after that the shares turned back upward and snapped a downtrend line. Late last year, the shares completed their base with a breakout over $17.00 that signaled the start of a new uptrend which continues to this day.
Next potential upside resistance appears near $21.50, $24.00 and $26.00 based on measured moves, plus the $25.00 round number and $28.50 based on a previous high. Initial support appears in place near the $17.00 breakout point.
Back in December, Cameco Corp. (CCO) signaled the start of a new uptrend with a breakout over $17.00 that resolved a multi-year sideways trend to the upside. Following a brief consolidation period, accumulation has resumed with the shares breaking out to a new high yesterday and completing a bullish Double Top pattern to signal the start of a new upleg.
Next potential upside resistance tests on trend appear near $21.50, $22.80, and $27.25 all based on horizontal counts, then $28.90 where two vertical counts converge. Initial support appears near $17.25 based on a 3-box reversal.
Despite its bearish SMAX score improving to 4, CCO.TO is still exhibiting near-term weakness against the asset classes.
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