Cameco (CCJ) Gains 3.22% as Bullish Patterns Signal Potential Breakout Past $89.78 Resistance

Cameco (CCJ) closed the most recent session at $87.58, up 3.22%, indicating a short-term bullish reversal following a prior decline. The candlestick pattern suggests a potential breakout above key resistance levels, particularly the recent high of $88.45 and the prior resistance at $89.78. Critical support levels are identified at $84.29 and $86.13, with the current price comfortably above these thresholds, suggesting a consolidation phase after a sharp rebound.
Candlestick Theory
The recent price action exhibits a bullish engulfing pattern, with the most recent session’s body completely covering the previous session’s bearish candle.

This pattern, coupled with the price surpassing the $88.45 resistance, may indicate a shift in momentum. Key support levels at $84.29 and $86.13, if retested, could validate the continuation of the uptrend.
Moving Average Theory
The 50-day moving average (approx. $84.50) is currently below the 100-day ($85.80) and 200-day ($86.20) averages, suggesting a medium-term bullish bias as the short-term MA aligns with the upward trajectory. A crossover of the 50-day above the 100-day would reinforce the bullish case, while a breakdown below the 200-day could signal a retest of key support.
MACD & KDJ Indicators
The MACD histogram has turned positive, with the line crossing above the signal line, confirming momentum. The KDJ oscillator shows the %K line above %D, suggesting a potential continuation of the rally. However, the RSI is approaching overbought territory (70+), indicating caution for short-term corrections. Divergence between the MACD and RSI may hint at a temporary pullback before resuming the uptrend.
Bollinger Bands
Volatility has expanded following the recent rally, with the price nearing the upper band. The contraction of the bands prior to the breakout (e.g., mid-December) suggests a period of consolidation before the current surge. A sustained close above the upper band would validate the continuation of the trend, while a retreat toward the middle band could indicate a pause in momentum.
Volume-Price Relationship
Trading volume surged on the most recent bullish session, validating the price increase. However, volume has been mixed in preceding sessions, with some days showing high volume during declines. This inconsistency may suggest caution in interpreting volume as a definitive strength indicator. A sustained increase in volume during upward moves would strengthen the bullish case.
Relative Strength Index (RSI)
The RSI is currently in overbought territory (>70), signaling a potential short-term correction. While this is a warning sign, the RSI has historically remained elevated during strong trends, particularly when supported by bullish momentum indicators. A drop below 60 would suggest a pullback, but a retest of overbought levels could confirm the trend’s resilience.
Fibonacci Retracement
Key Fibonacci levels from the recent low ($84.29) to high ($96.57) include 23.6% ($91.80), 38.2% ($89.90), and 61.8% ($87.50). The current price near $87.58 aligns with the 61.8% retracement level, suggesting a potential consolidation zone. A break above $89.90 could target the 78.6% level at $86.40, while a drop below $87.50 may test the 50% level at $88.50.
Confluence and Divergences
The strongest confluence occurs at the 61.8% Fibonacci level, where the price aligns with the 200-day moving average and recent support. The bullish engulfing pattern and MACD crossover reinforce the case for a continuation. Divergences exist between the overbought RSI and the MACD/KDJ indicators, suggesting a temporary pause but not a reversal.
Probabilistic Outlook
The current setup suggests a high probability of the price consolidating around $87.50 before resuming an upward bias, provided the 61.8% Fibonacci level holds. A breakdown below $84.29 would invalidate the bullish case, while a breakout above $89.78 may target $91.80.