Cameco (CCJ) is an unusual situation here. It in fact played out as a Shortable Gap-Up at the open after reporting earnings and beatings estimates with a five-cent profit vs. expectations of a two-cent loss. In its extended state the sell-the-news reaction is not surprising. It has now come all the way back into the 20-dema and 200-dma and is on track to post a pocket pivot volume signature. The wrinkle here is that if it can hold support at the 20-dema/200-dma confluence it could play out as a stalling pocket pivot. This creates a long entry possibility using the two moving averages as convenient selling guides if it fails.
We both like the thematic aspect of a uranium play, as we discussed in yesterday's live webinar. The only question is where the long set-ups come into play and hold up during what is a bear market rally for now, but could develop into something more significant. We have a position in the stock, but may not hold it through the day if it cannot push up and off the moving averages. It initially looked like it was going to fail outright, and testing a long position was a bit dicey. It appears to have stabilized a bit intraday as we see a shift away from big tech and into commodity-related names. But, as we said, the situation is fluid.
Pocket Pivot Review - Cameco (CCJ) 10/27/22
|Published:||27 Oct 2022 10:26 ET|
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