Cameco Dips 1.61% As Technical Indicators Signal Pivotal 75 Support Battle

Cameco (CCJ) declined 1.61% to $75.28 in the latest session, with the price ranging between $75.09 and $76.45. This technical assessment synthesizes multiple indicators to evaluate the stock’s trajectory.
Candlestick Theory
Recent sessions show consolidation near the $75 support level. The August 22 bullish engulfing pattern (low: $72.75, close: $74.91) confirmed buying interest after a downtrend, while August 27’s decline tested this support. Resistance is evident near $78.50, aligning with the August 12 high. The current struggle at $75-$76 suggests this zone is pivotal for near-term direction.
Moving Average Theory
The 50-day moving average (approximated near $72) remains below the 100-day (near $70) and 200-day (near $63), confirming a long-term uptrend. However, the price trading below the 50-day MA after its August peak indicates short-term bearish pressure. Sustained holding above the 100-day MA would support bullish resumption, while a break below $70 could signal deeper correction.
MACD & KDJ Indicators
MACD shows a potential bearish crossover as the signal line threatens to overtake the MACD line after the August 20 sell-off. KDJ readings rebounded from oversold territory (below 30) in late August but now approach neutral levels. Neither oscillator signals strong momentum; MACD’s negative divergence from price during the August rebound warrants caution for bulls.
Bollinger Bands
Volatility expanded during the August 20 sell-off (price touched lower band) and the subsequent recovery. The bands have since narrowed, indicating reduced volatility. The current price hovering near the middle band suggests equilibrium. A decisive close above $76.50 (upper band) or below $73 (lower band) could trigger directional momentum.
Volume-Price Relationship
The August 20 decline (‑4.54%) occurred on high volume (8.1M shares), confirming bearish conviction. The August 22 surge (+4.87%) saw even higher volume (4.6M shares), validating bullish reversals. However, recent pullbacks lack significant volume support, weakening bearish arguments near $75 support.
Relative Strength Index (RSI)
RSI (14-day) rebounded from oversold (31) on August 20 to near 55 recently. Current readings near 50 reflect neutral momentum. Absence of overbought (>70) or oversold (<30) extremes suggests limited reversal signals. RSI divergence during the August rally—lower highs versus price—hints at underlying weakness.
Fibonacci Retracement
Applying Fib levels to the April low ($35) and July high ($80.32), the 23.6% retracement ($69.62) provided robust support during the August 20 sell-off (low: $68.96). This level remains critical. Near-term resistance aligns with the 0% level ($78-$80). A break above $76.50 may target $78.50 (38.2% pullback of recent downtrend).
Conclusion
Cameco’s technical posture shows confluence at $75 support (candlestick, volume) with broader uptrend confirmation (moving averages, Fib support). However, mixed signals emerge: Bollinger Band neutrality and MACD/KDJ ambiguity contrast with volume-backed bullish reversals. Divergence in RSI and MACD during recovery phases advises vigilance. A sustained hold above $76.50 could invalidate near-term bearishness, while failure at $74.50 may trigger retesting of Fib support at $69.62. Risk-reward appears balanced at current levels pending decisive price/volume confirmation.