$CCJ is the $URA Leader – October 20, 2023
This is Scott with your Chart of the Day. I want to take a look at Cameco Corp ( NYSE: CCJ ).
CCJ ( NYSE: CCJ ) is a leader in the uranium space. The uranium space ( NYSEARCA: URA ) has been rocking, really since June when it broke above and held above that 50-day moving average, and did it on a nice pickup in volume. Yes, you did get it in a bit of a backtest but, once that happened, it pretty much just trended up and up and up.
And ever since then, Cameco ( NYSE: CCJ ) has been holding nicely in and around some key moving averages. You can see here, today, that it is up above the 50-day moving average, that’s the red line. It’s above the 21-day, that’s the green line, and it is above the 8-day, so it is above some key moving averages.
Meanwhile, if you look at the rest of the market the S&P ( NYSEARCA: SPY ), not so much. So CCJ ( NYSE: CCJ ), I think has some definite relative strength in this market and should be a stock that you should keep an eye on. Now I will say, they do have earnings coming up at the end of the month. That may not be something you want to hold unless you have a nice cushion in the stock.
But I definitely think, if we can get a nice break above that $39.00 level, it may give you a retest of at least up to 42.00. While that is not a lot, that is almost about 10 percent, not too bad for a short-term swing trade, so that is what I would look for here on CCJ ( NYSE: CCJ ). As long as it can hold above that 50-day moving average, I think it should stay on your watch list.
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