Cameco Rises 3.85% to $60.42 as Bullish Momentum Breaks Key Resistance

Candlestick Theory
Cameco’s recent price action reveals a bullish bias, closing at $60.42 (June 6) after four consecutive up days (+3.85%). The June 3 session produced a decisive bullish marubozu (open near low, close near high at $59.68), breaking above the $58–$59 consolidation zone. This signals strong buying momentum, with key support now at $58.18 (June 2 low) and resistance at $60.97 (June 3 high). A sustained close above $61 could trigger further upside.
Moving Average Theory
The stock trades above all critical moving averages, confirming a robust uptrend. The 50-day MA (currently ~$53.50) crossed above the 100-day MA (~$50.80) in late April, while the 200-day MA (~$45.56) slopes upward—a golden cross structure. The price holding above the 50-day MA since mid-May reinforces bullish control. However, the widening gap between the price and the 200-day MA suggests potential overextension.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover since mid-May, though the histogram’s momentum is flattening near June highs, hinting at consolidation. KDJ (14,3,3) registers at K:78/D:73/J:88, near overbought territory but not yet extreme. While KDJ supports continuation, divergence would form if price climbs further without KDJ matching recent highs.
Bollinger Bands
Volatility expanded sharply during the May 23 breakout (11.13% gain), with price pushing above the upper band—indicating overbought conditions. Recent sessions show the bands contracting as price consolidates between $59.25 and $60.54, aligning with the 20-period MA (mid-band). A band squeeze suggests imminent volatility; a breakout above $61 could reignite upside momentum.
Volume-Price Relationship
Volume trends validate the uptrend. The May 23 surge occurred on 13.4M shares (3× average volume), confirming institutional participation. Subsequent pullbacks saw lighter volume, while the June 3 advance used 5.8M shares—above average but lower than prior spikes, suggesting cautious follow-through. Current consolidation occurs on moderate volume, typical of bullish pauses.
Relative Strength Index (RSI)
Daily RSI(14) sits at 67, nearing overbought territory (>70) but with room for further upside. Notably, RSI diverged bearishly in late May: price made higher highs (~$62.27 on May 27), but RSI peaked at 80 in mid-May and formed a lower high (~78). This warns of fading momentum. RSI must hold above 60 to sustain bullish structure.
Fibonacci Retracement
Using the swing low from August 2024 ($41.02) to the June 2025 high ($60.97):
- 38.2% retracement: $53.32 (held during May pullbacks)
- 61.8% retracement: $48.10 (major support)
The price respected the 38.2% level twice in May, solidifying it as a confluence support. A pullback toward $53.32 would offer a high-probability entry if paired with oversold signals.
Confluence & Divergence
Bullish confluence exists at $58–$59 (candlestick support + 50-day MA) and $53.32 (Fibonacci + volume-supported zone). Bearish divergence appears between price and momentum oscillators: MACD histogram is declining near highs, and RSI failed to confirm the May 27 peak. This divergence must resolve via either price correction or accelerated momentum. For now, the trend favors upside, but tightening stops near $58 is prudent given overbought signals.