Let’s follow up on $CCJ – June 6, 2023
This is Scott with your Chart of the Day. I want to follow up on a Chart of the Day that I talked about on May 25th of this year, and that is Cameco ( NYSE: CCJ ).
Now, you may remember the video; I was talking about this long base of consolidation. The fact that Cameco ( NYSE: CCJ ) chopped sideways for almost 2-years here. And most recently posted a pretty clear downward-sloping trendline with resistance right around this level here.
And so what I was looking for from Cameco ( NYSE: CCJ ) was a strong move-through, coming on volume. Well, wouldn’t you know it, we ended up getting a power move through resistance and soaked it all up with a big pickup in volume. This is the biggest volume Cameco ( NYSE: CCJ ) has had since October of 2022, and so that is notable.
Anytime you are seeing a break of resistance coming from a stock, in my opinion, it’s really important to see that volume confirm the move higher. And so for me as an active investor, I am really leaning heavily on volume. I don’t want to be the only one that is buying. I want to see the big boys and the big girls buying along with me.
That is what we got here with Cameco ( NYSE: CCJ ). A bounce off the 50-day, follow through the next day, and that volume is everything you need to know. And so now this stock is hovering above resistance. Ideally, it can flag here, it can just kind of go sideways, consolidate that move, and then take out the highs right above that 31.40 level.
That, in my opinion, is the next level you want to watch here on Cameco ( NYSE: CCJ ). Watch it consolidate, you want to see it soak up this move, rest above resistance, and maybe we get a retest. But if you do, then you want to see that bounce off that level, and that volume coming back in to support the stock.
So Cameco ( NYSE: CCJ ) is working. They don’t all work but this is one that I wanted to mention because it was one that I talked about a handful of times. And we finally got that clear break of resistance after a long 2-year period of consolidation. So patience has paid for anyone who saw the pattern, set the alert, and took the signal.
Free Chart