CCJ simply pulled again to a traditionally bullish trendline on the charts
Shares of the world’s largest publicly traded uranium firm, Cameco Corp (NYSE:CCJ), are up 1.4% at $40.11 this afternoon. Nevertheless, a current downtrend simply positioned CCJ close to a trendline with traditionally bullish implications.
The inventory has come inside one commonplace deviation of its 200-day shifting common for the sixth time previously three years. In accordance with Schaeffer’s Senior Quantitative Analyst Rocky White, Cameco inventory was constructive one month later 67% of the time, averaging a 12.7% acquire. An analogous transfer would push the shares again as much as the $45.20 degree, recovering its March losses.
The 200-day trendline really stepped as much as save yesterday’s 5.7% dip that mirrored falling spot costs — the International X Uranium ETF (URA) took a 2.9% dive throughout yesterday’s session. Right this moment’s pop may very well be the start of a longer-term uptrend, and that is an intriguing entry level for a inventory that is up 45.6% year-over-year, however down 1.2% yr so far.
An unwinding of pessimism within the choices pits may present tailwinds as effectively. On the Worldwide Securities Change (ISE), Cboe Choices Change (CBOE), and NASDAQ OMX PHLX (PHLX), CCJ’s 10-day put/name quantity ratio of 1.45 ranks greater than 91% of readings from the previous yr.
