The world slowly is recognizing that it needs an “all of the above” approach to address climate change and reduce the use of fossil fuels. Solar and wind power cannot do it alone and many countries have been reversing their prior reluctance to embrace nuclear energy.
I have recommended uranium producer Cameco Corp. ( CCJ) going back around two years ago, with my last review of its charts on Aug. 30 of last year. “We looked at Cameco back on March 9 and liked the charts,” I wrote at that time. “The charts of CCJ continue to look attractive and traders with patience should continue to probe the long side. Risk to $21 for now on new longs.”
Let’s check the charts of CCJ again and look at Uranium Energy Corp. ( UEC) as another option for investors with vision and patience.
In this daily bar chart of CCJ, below, I see that prices have made higher lows the past 12 months — around $18 in January followed by $20 in May and $20.50 in June and July. The next higher low comes in October at $21 and then $21.50 in December. CCJ needs to make a higher high to refresh the uptrend. Prices are now back above the 50-day and the 200-day moving average lines. The daily On-Balance-Volume (OBV) line shows a rise from May as buyers of CCJ are behaving more aggressively than sellers. The Moving Average Convergence Divergence (MACD) oscillator is crossing the zero line for a new outright buy signal.
In this weekly Japanese candlestick chart of CCJ, below, I see a longer-term uptrend going back three years. Prices have crossed below and above the 40-week moving average line the past year or so, but CCJ is now above the long-term lagging indicator. The trading volume has been increasing the past three years as more investor interest comes round to “yellow cake.” Increasing price and volume is a bullish combination. The weekly OBV line shows steady upside progress to confirm the price gains. The weekly MACD oscillator is crossing to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of CCJ, below, I can see that CCJ has a nearby upside price target of around $26.
In this weekly Point and Figure chart of CCJ, below, a price objective of $33 is now projected.
Another uranium idea but a bit more speculative is Uranium Energy Corp. In this daily Point and Figure chart of UEC, below, a price target in the $5 area is shown. Also take note of the big up and down swings in this name. Do some research and risk below $3.
Bottom line strategy: Uranium is still a “back of the C section” story, so investors need to be patient. Continue to hold longs with stops below $21.