Cameco is in a tricky position, technically speaking. Sellers are in control, albeit marginally. Without a move above 10.30 next month, the stock will end the year with a bearish bias, with a price-neutral start in 2020.
Come January, we will be looking for buyers to enter at 8.16. If they get traction, we anticipate renewed selling interest at 10.53. If buyers usurp bears at 10.53, we will be looking for a fight through congestion to 11.85, a clear break through which clears a path to 14, 15.18 and higher.
On the flip-side, if buyers prove too weak at the 8.16 level, a dip to 6.85 is possible with a subsequent decline to 4.70 and lower, at which price we would be ferocious buyers.
To sum it up, we are buyers above 11.85 and short-sellers under ~6.80, covering and repurchasing just under 5.
