Cameco (CCJ) looking to extend higher
|The fundamental of Uranium continues to get better. Various countries like Japan and South Korea have now turned to nuclear power as a solution to the energy crisis. The U.S. and Europe recently proposed to put a cap on Oil supplied by Russia. Russia in turns turned off the gas pipe in Nordstream 1. The tit-for-tat economic war risks to unleash the worst energy crisis in Europe and by extension around the world. Already the European continent is facing a steep rise in electricity bills affecting a lot of the local businesses. As the outlook for Uranium gets better, 1 Uranium-mining company which could offer a leveraged play in Uranium sector is Cameco (symbol: CCJ). Below is the chart for the stock.
$CCJ monthly Elliott Wave chart
Monthly chart above suggests the stock ended wave (II) at 5.30 and the stock has resumed higher in wave (III). Up from wave (II), wave I ended at $28.49 and wave II is proposed complete at $20.02. The stock still needs to break above the previous peak at $32.49 to confirm the next leg higher has started and rule out a double correction
$CCJ daily Elliott Wave chart
Daily Chart above shows that Wave II ended already at $20.02 as a running flat. The stock however still needs to break above wave ((B)) of II at $32.49 in order to confirm the view. As far as the stock stays above $5.3, pullback should find support in 3, 7, or 11 siwng for further upside.
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