For the past four years, Cameco Corp. (Friday’s close $14.18) has been trading within a wide horizontal range mostly between $10 and $17 (dashed lines).
The stock rose toward the top of this range recently (A), ran into resistance and reversed toward $13.50-14.00 near its 40-week Moving Average (40wMA). A sustained rise above $16-17 would signal a breakout and the start of a new up-leg toward higher targets.
Beahviour indicators including the rising 40wMA confirm the bullish potential. Only a sustained decline below ±$13 would be negative.
A rise above $16-17 would signal initial Point & Figure targets of $21 and $24. Potentially higher targets are visible.
stock
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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