Cameco Jumps 3.19% As Technicals Signal Bullish Reversal Above $75

Cameco's Technical Analysis
Cameco (CCJ) concluded the latest session at $75.26, posting a 3.19% gain amid heightened trading volume. This analysis examines key technical dynamics shaping the stock's trajectory.
Candlestick Theory
Recent sessions reveal a potential bullish reversal pattern. The August 1st candle tested the $70.82 support (recent swing low) before forming a hammer-like structure on August 4th with a close near the session high ($75.26). This suggests buyer conviction at the $70-$72 support zone. Resistance is evident near $80, where multiple rejections occurred in late July (July 29th–31st highs of $80.32–$80.055). A sustained breakout above $80 would signal renewed bullish momentum.
Moving Average Theory
The 50-day moving average (MA) currently slopes upward near $68, reflecting strengthening intermediate momentum. The 100-day MA ($63) and 200-day MA ($54) maintain positive slopes, confirming the long-term uptrend remains intact. The latest close ($75.26) sits comfortably above all three MAs, signaling robust bullish alignment. A key watchpoint is the 50/100-day MA confluence near $66, which would likely act as major support if retested.
MACD & KDJ Indicators
The MACD histogram is positive but narrowing, indicating moderating bullish momentum. Recent consolidation has pulled the KDJ out of overbought territory (KDJ > 80 in late July), with the %K line now crossing above %D near 55. This mid-level crossover suggests short-term upside potential. However, neither oscillator shows decisive divergence, implying trend continuation remains probable.
Bollinger Bands
Bollinger Bands contracted sharply in early August, signaling reduced volatility after July’s wide swings. Price rebounded from the lower band ($72) toward the 20-period midline ($74), now challenging the upper band ($77). A close above the upper band could foreshadow a volatility expansion and renewed uptrend. The July 31st breakdown below the lower band was short-lived, underscoring underlying demand.
Volume-Price Relationship
Volume surged 43% during the August 4th rally, validating bullish conviction. Notable distribution occurred during the July 31st sell-off (7.92M shares vs. 30-day avg ~5M), confirming resistance near $80. Accumulation is evident at the $72–$75 support zone, with above-average volume on up days (e.g., August 4th and July 14th). This volume profile supports the current rebound attempt.
Relative Strength Index (RSI)
The 14-day RSI rebounded from near-oversold levels (recently ~35) to 55, neutralizing extreme conditions while retaining upside room. The July peak saw RSI exceed 75, warning of overbought pressure that preceded the pullback. Current readings suggest balanced momentum, though persistent readings above 60 would reinforce bullish control.
Fibonacci Retracement
Using the swing high of $80.055 (July 31) and swing low of $70.82 (August 1), key Fibonacci levels emerge: the 61.8% retracement at $75.50 aligns with the August 4th close ($75.26), while the 50% level ($75.44) served as resistance. A decisive break above $75.50 opens the path toward $78 (78.6% retracement). The 38.2% level ($73.90) now acts as near-term support.
Confluence and Divergence Observations
Confluence exists at the $70–$72 support zone, reinforced by the 50-day MA, volume accumulation, and hammer candlestick. The break above $75.50 Fibonacci resistance would further align with bullish MA positioning. Minor divergence is noted as MACD momentum softened while price recovered, though KDJ’s mid-level crossover mitigates concern. Overall, indicators suggest a neutral-to-bullish bias with $80 resistance as the critical breakout target.