Cameco Corporation (CCJ) is currently displaying a classic cup and handle pattern, a bullish continuation signal. Here’s a breakdown of the pattern and what to watch for:
Cup and Handle Breakdown:
The Cup:
A rounded base formed between April 2024 and October 2024, with the left and right peaks near $58.72 and a low around $46.76.This symmetrical cup formation indicates accumulation after a downtrend, with buyers gradually gaining strength.
The Handle:
After testing the $58.72 resistance level, the stock pulled back slightly to form a handle, consolidating around $55.66.
Handles are characterized by lower highs and decreasing volume, setting the stage for a breakout.
Volume:
Volume has declined during the handle formation, a textbook signal of the pattern. Look for a volume spike to confirm the breakout. Breakout Level (Rim of the Cup): $58.72
Projected Target: Add the cup depth to the breakout level: $58.72 + $11.96 = $70.68
Profit Targets:
First Target: $65.00
Second Target: $70.68
Bearish Contingency:
If the price breaks below $55.66, the pattern is invalidated, and CCJ may test lower levels.
Cup and Handle Breakdown:
The Cup:
A rounded base formed between April 2024 and October 2024, with the left and right peaks near $58.72 and a low around $46.76.This symmetrical cup formation indicates accumulation after a downtrend, with buyers gradually gaining strength.
The Handle:
After testing the $58.72 resistance level, the stock pulled back slightly to form a handle, consolidating around $55.66.
Handles are characterized by lower highs and decreasing volume, setting the stage for a breakout.
Volume:
Volume has declined during the handle formation, a textbook signal of the pattern. Look for a volume spike to confirm the breakout. Breakout Level (Rim of the Cup): $58.72
Projected Target: Add the cup depth to the breakout level: $58.72 + $11.96 = $70.68
Profit Targets:
First Target: $65.00
Second Target: $70.68
Bearish Contingency:
If the price breaks below $55.66, the pattern is invalidated, and CCJ may test lower levels.
Dagangan ditutup: sasaran tercapai
CCJ 12/06/24 65C @0.42CCJ 11/22/24 60C @0.41
Closed out with profit....46.43% n 35.48%
The target is still valid but money is money :)
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.