Cameco Surges 7.87% on Bullish Technicals and 15% Volume Surge

Cameco (CCJ) has surged 7.73% in the most recent session, extending a two-day rally with a cumulative gain of 7.87%. This sharp reversal from prior volatility suggests a potential short-term bullish momentum, warranting a multi-indicator analysis to assess trend strength and sustainability.
Candlestick Theory
The recent price action reveals a strong bullish engulfing pattern, with the prior bearish candle (91.49) being fully consumed by the subsequent bullish session (98.56). Key support levels are identified at the 90.89–91.37 range, while resistance clusters emerge at 92.84 and 98.56. The 87.05–89.78 zone also acts as a secondary support, with the 93.41–95.74 range forming a critical resistance cluster. A break above 98.56 could target the 96.95–100.85 zone, while a pullback to 90.89 may test the 84.85–87.05 support.
Moving Average Theory
The 50-day moving average (calculated from historical data) currently resides at ~89.50, while the 200-day MA sits at ~74.50, indicating a long-term bullish bias as the price remains above both. The 100-day MA (~85.00) aligns with the 50-day MA, reinforcing the upward trend. The recent close at 98.56 suggests the stock is in a strong uptrend, with the 200-day MA acting as a robust support floor. A pullback below the 50-day MA could trigger a retest of the 87.05–89.78 support, but the broader trend remains intact.
MACD & KDJ Indicators
The MACD histogram has turned positive, with the MACD line crossing above the signal line, signaling growing bullish momentum. The KDJ oscillator shows the %K line at 80.5 and %D at 78.3, indicating overbought conditions. While this may suggest a near-term pullback, the divergence between %K and %D is narrowing, implying the uptrend could persist. A bearish crossover in the KDJ would likely precede a correction, but confluence with the MACD’s bullish signal suggests caution before initiating short positions.
Bollinger Bands
Volatility has expanded significantly, with the recent close at 98.56 near the upper band (calculated at ~99.00). This suggests a potential overbought condition and a possible reversion toward the 20-day MA (~94.50). The bands have widened from a prior contraction in mid-December, signaling heightened uncertainty. A sustained break above the upper band may extend the rally, but a move below the 89.78–90.89 range could trigger a retest of the 84.85–87.05 support.
Volume-Price Relationship
Trading volume surged to 4.77 million shares on the most recent session, a 15% increase from the prior day, validating the price strength. The volume profile shows a consistent increase in activity during the rally, with the 91.49–98.56 range exhibiting the highest accumulation. A divergence between volume and price (e.g., declining volume during an upward breakout) would signal weakening momentum, but current data supports the bullish thesis.
Relative Strength Index (RSI)
The 14-period RSI stands at 68.5, approaching overbought territory (70). While this suggests a potential near-term correction, the RSI remains within the 60–70 range, indicating a healthy uptrend. A close above 70 would confirm overbought conditions, but given the stock’s recent volatility, this should be treated as a caution rather than a sell signal. A drop below 60 would validate a pullback, aligning with the KDJ’s potential bearish crossover.
Fibonacci Retracement
Applying Fibonacci levels between the December low (84.85) and the January high (106.91) reveals key levels at 93.41 (38.2%), 96.95 (50%), and 100.85 (61.8%). The current price of 98.56 is near the 61.8% retracement level, suggesting a potential consolidation phase. A break above 100.85 could target the 106.91–110.16 range, while a retest of 96.95 would confirm the 50% level as a critical support/resistance.
Confluence and Divergence
Multiple indicators align on the 98.56–100.85 zone as a key confluence area, with the 200-day MA, Fibonacci 61.8% level, and Bollinger Bands upper band converging. The MACD’s bullish signal and expanding volume further support this target. However, the RSI’s proximity to overbought levels and the KDJ’s overbought readings highlight a potential short-term correction. Divergence between the RSI and price action (e.g., lower highs in RSI despite higher price) would necessitate caution, but current alignment suggests the uptrend remains intact.