Uranium producer Cameco Corp. (CCO.TO) has returned to the Green Favored Zone in the SIA S&P/TSX Composite Index Report from a short drop into the red zone. Yesterday, CCO.TO jumped 38 positions to 54th place.
Cameco (CCO.TO) shares have been under steady accumulation since the fall of 2020, advancing in a bullish Rising Channel of higher highs and higher lows. A recent downswing successfully retested uptrend support. With the shares regaining $30.00 and their 50-day moving average, a new upswing appears to be underway.
Initial upside support has moved up toward $32.00, a recent breakout point, from the $30.00 round number. Initial upside resistance appears in the $40.00 to $42.00 area, where the previous peak, a round number, and a measured move converge.
After staging a downswing in May that bottomed out at another higher low to keep its primary uptrend intact, Cameco (CCO.TO) shares have been bouncing back this month. Completing a bounce of more than 50% of the previous down column, Cameco has triggered a bullish Low Pole Warning that confirmed the start of a new upswing.
Initial upside resistance appears at the previous peak near $40.40, followed on trend by $43.70 and $47.30, both of which are based on vertical counts. Initial support appears near $31.20 based on a 3-box reversal.
With a bullish SMAX score of 9, CCO.TO is exhibiting strength against the asset classes.
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