Cameco Rises 2.12% as Technicals Signal Upside Breakout Above $71.31 Resistance

Cameco (CCJ) advanced 2.12% in the most recent session, closing at $69.72 after trading between $67.60 and $70.58. This analysis assesses the technical landscape using the specified framework without visual outputs.
Candlestick Theory
Cameco's price action reveals a critical resistance level at $71.31 (June 16th high), which capped upside attempts on June 23rd ($70.58 high). Conversely, support has solidified near $67.60 (June 23rd low), reinforced by the bullish hammer candle formed that day (long lower wick, close near high). The June 20th bearish engulfing pattern briefly interrupted momentum, but the recovery to $69.72 on June 23rd suggests accumulation near support. This structure indicates consolidation within a $67.60–$71.31 range, with a breakout above resistance potentially accelerating gains.
Moving Average Theory
The 50-day MA ($63.50) and 100-day MA ($58.00) exhibit robust bullish alignment. The current price ($69.72) trades 9.8% above the 50-day MA, confirming a strong short-term uptrend. The Golden Cross—50-day MA crossing above the 100-day MA in Q1 2025—remains intact, signaling sustained bullish momentum. Multiple bounces off the 50-day MA during June (e.g., June 11th and June 16th) reinforce its role as dynamic support. The ascending slope of both MAs suggests trend continuation probabilistically favors upside resolution.
MACD & KDJ Indicators
The MACD histogram has turned positive after a brief dip below the signal line in mid-June, indicating reaccelerating upward momentum. However, the MACD line (0.95) remains below the signal line (1.02), suggesting near-term consolidation risk. Meanwhile, the KDJ oscillator shows the %K line (78) crossing above %D (72) from oversold territory (<30 on June 20th), supporting a short-term bullish reversal signal. Notably, this KDJ crossover aligns with the price rebound from $67.60, though proximity to overbought levels (KDJ >80) warrants vigilance for exhaustion.
Bollinger Bands
Bollinger Bands (20-day period, 2σ) expanded sharply during the June 16th breakout (14% volatility surge), reflecting strong directional conviction. Current price action hugs the upper band ($70.60), typically signaling overbought conditions, but the band’s widening slope suggests room for additional upside. The June 23rd close marginally inside the bands indicates consolidation, while the 20-day MA ($67.40) converges with key horizontal support. A contraction in bandwidth below 8% (vs. 10% current) would heighten reversal alertness.
Volume-Price Relationship
Volume surged 25% during the June 16th rally to 11.18 million shares, validating the breakout above $68.00. Subsequent pullbacks (e.g., June 20th’s 2.01% drop) occurred on lower volume (-20% vs. average), indicating limited distribution. The June 23rd advance registered moderate volume (5.07 million shares), slightly below the 30-day average but sufficient to sustain the move. The volume profile shows accumulation near $68–$69, with climactic volume at swing highs/lows supporting trend sustainability.
Relative Strength Index (RSI)
The 14-day RSI (65) has rebounded from neutral (50) but remains below overbought territory (>70). This positioning allows room for upside before technical exhaustion. Crucially, RSI displayed positive divergence during June’s pullback—testing higher lows (55 on June 20th vs. 52 on June 10th) while price established a lower low ($67.60 vs. $67.76). This divergence warns of weakening downside momentum, though its predictive reliability requires confirmation from price breaking resistance.
Fibonacci Retracement
Applying Fibonacci to the major uptrend from the August 5, 2024 low ($36.90) to the June 16, 2025 high ($71.31), key retracement levels are: 23.6% ($61.98), 38.2% ($57.19), and 61.8% ($49.43). The June sell-off found support precisely at the 23.6% level ($67.60), demonstrating its technical relevance. Holding above this shallow retracement signals robust trend strength. A decisive break above $71.31 would invalidate immediate Fibonacci resistance, while failure below 23.6% may expose the 38.2% level.
Confluence and Divergence Synthesis
Bullish confluence appears at $67.60–$68.00 (50-day MA, 23.6% Fibonacci, June 23rd low). This zone aligns with volume-supported accumulation and positive RSI divergence, offering a high-probability entry region. Minor divergence exists between MACD’s lagging signal-line crossover and the KDJ’s bullish reversal, suggesting near-term consolidation before directional conviction resumes. No bearish divergences contravene the primary uptrend. Overall, technical structure favors upside bias above $67.60, with a $71.31 breakout potentially extending gains toward $75.00. Traders should monitor volume on retests of resistance to validate sustainability.