CCJ stead as she goes but triple top failure ahead?Cameco Corp. (CCJ) shows a strong uptrend with a consolidation just below resistance, which is a bullish technical pattern. Let’s break it down:
🔍 Technical Analysis of CCJ
1. Trend Structure
Clear uptrend: The stock has been making a series of higher highs and higher lows since March.
Ascending trendline (yellow dashed line): Price continues to respect this trendline as dynamic support, indicating sustained buying momentum.
2. Resistance Zone
Horizontal resistance at ~$75.42: This level has been tested multiple times but not yet convincingly broken.
The recent candles are testing this level again, showing pressure building. This increases the probability of a breakout.
3. Support Zone
Horizontal support at ~$67.87: This was the breakout level from a prior consolidation in early June and has acted as support since then.
Also aligns with the ascending trendline, forming a rising base—a sign of strength.
4. Volume Analysis
Volume has been picking up slightly during the current approach to resistance, but a significant spike in volume on a breakout would add strong confirmation.
Notably, there was strong volume during previous rallies—momentum buyers may be waiting for a confirmed breakout before re-entering.
✅ Bullish Scenario
A daily close above $75.42, ideally on above-average volume, could trigger a breakout with a target toward $80–82 in the near term.
The steep angle of the ascending trendline supports a continued rally if broader market conditions are favorable.
⚠️ Bearish/Neutral Scenario
If price fails to break above $75.42 and drops below the ascending trendline, look for a retest of the $67.87 level.
A break below that support could open the door for a deeper pullback toward the mid $60s.
🧠 Summary
CCJ is in a bullish consolidation pattern with strong support from a rising trendline and a flat-top resistance at ~$75.42. The setup resembles a classic ascending triangle, a continuation pattern that often resolves with a breakout in the direction of the prevailing trend (up).
Watch closely for:
A breakout candle above $75.42 with strong volume
Potential pullbacks toward the trendline for entries if breakout fails temporarily
