Cameco Breakout Update
Wednesday morning we highlighted mega uranium producer Cameco (CCJ, CCO.TO) and the potential for multiple chart pattern breakouts along with improving fundamentals. Since then Cameco shares have rallied ~10% and broken out above a 13-month downtrend line while completing a rounding bottom chart pattern:
The rounding bottom pattern targets an upside move to at least $18.50 and offers a probability that the 4-year bear market in uranium producers that began after the Fukushima disaster in March 2011 has come to a close.
Powerful breakout on heavy volume from 13-month downtrend targets a 30%+ rally over the coming weeks.