Cameco Gains 2.97% In Two Days As Technicals Signal Tentative Recovery

Cameco (CCJ) rose 0.98% in the most recent session, marking its second consecutive day of gains with a cumulative increase of 2.97%. The stock closed at $82.61 after trading between $81.34 and $83.30, reflecting continued recovery momentum following recent volatility. This price action suggests tentative buyer interest, though key technical levels warrant close scrutiny.
Candlestick Theory
Recent candlestick patterns highlight significant volatility, with the bullish Marubozu on September 15 (open near $78.22, close at $86.32) indicating strong buying pressure, followed by a bearish Engulfing pattern on September 16 (open near $86.33, close at $80.23) signaling reversal. The subsequent two green candles demonstrate short-term recovery but face resistance at $83.30 (today’s high) and the critical $86.37 swing high. Support emerges at $81.34 (today’s low), reinforced by the $80.31–$79.71 zone from September 16–17, which aligns with the psychological $80 level.
Moving Average Theory
Cameco trades above its 50-day SMA (estimated ~$78–$80), suggesting the intermediate uptrend remains intact despite recent pullbacks. The 50-day SMA maintains a bullish posture above the 100-day (~$75–$77) and 200-day SMAs (~$60–$62), confirming a long-term golden cross. Current price stability near the 50-day SMA may signal consolidation support. A sustained break below the 50-day SMA would weaken the technical structure.
MACD & KDJ Indicators
The MACD histogram shows diminishing bearish momentum, with the signal line nearing a bullish crossover after the recent dip. Concurrently, the KDJ oscillator rebounded from oversold territory (K/D near 20 on September 16) to neutral levels (K/D ~45–50 currently). The %K crossing above %D supports short-term upside potential. However, both oscillators lack decisive bullish confirmation, warranting caution against premature reversal calls.
Bollinger Bands
Bollinger Bands expanded sharply during the September 15–16 volatility spike (20-day SMA at ~$80.50, bands at ±2σ). The dip below the lower band on September 16 triggered a reversion to the mean, with price now testing the 20-day SMA as resistance. Band contraction has initiated, suggesting reduced volatility. A close above the 20-day SMA could pave the way for an upper-band test near $84.50.
Volume-Price Relationship
Volume spikes accompanied both breakout and breakdown events: record volume (10.2M shares) on the 10.51% surge (September 15) and high volume (7.9M) on the 7.06% drop (September 16). However, the recovery days (September 17–18) saw below-average volume (~3.9–4.3M), raising questions about conviction in the rebound. Sustained gains require volume expansion to validate demand.
Relative Strength Index (RSI)
The 14-day RSI (calculated at ~58) rebounded from near-oversold levels (approaching 30 on September 16) to neutral territory. Current readings suggest balanced momentum but do not indicate overbought exhaustion. While the RSI uptick supports continuation potential, divergence is absent—price and RSI both recovered in tandem. Traders should monitor for bearish divergence if prices near resistance without corresponding RSI strength.
Fibonacci Retracement
Using the swing low of $70.47 (August 20) and high of $86.37 (September 15), key Fibonacci levels are established. The pullback to $79.71 nearly tested the 38.2% retracement ($80.30), aligning with the 50-day SMA. Current resistance converges at the 23.6% level ($82.62), closely matching today’s close. A decisive break above $82.62 may accelerate momentum toward $86.37, while failure here could retest the 38.2% support.
Confluence is noted at the $82.60–$82.62 area, where the 23.6% Fibonacci retracement, today’s closing price, and short-term Bollinger Band resistance intersect, presenting a critical inflection point. Conversely, the volume-price divergence during the rebound warrants attention—should prices advance without volume confirmation, the recovery may prove fragile. Overall, technicals suggest a cautiously bullish bias, contingent on clearing $82.62–$83.30 resistance with supportive volume.