CCJ

[Ramsburg]

Profile: Cameco Corporation engages in the exploration, development, mining, refining, and conversion of uranium that is used as fuel for generating electricity in nuclear power reactors worldwide. It operates four uranium mines in Canada and the United States, as well as two uranium mines under development in Canada and central Asia. The company also involves in the refining and conversion of uranium concentrate, and the purchase and sale of conversion services. Cameco operates as a commercial converter of uranium concentrates to uranium hexafluoride or uranium dioxide, a commercial supplier of services to convert uranium concentrates to uranium dioxide in the western world, and a supplier of fuel fabrication services for CANDU reactors. In addition, it engages in the generation and sale of electricity, as well as in the exploration, mining, milling, and sale of gold. The company generates electricity through its 31.6% interest in the Bruce Power Limited Partnership, which operates the four Bruce B nuclear reactors in Ontario.
Website: http://www.cameco.com
Market Cap: 13.9B

Trading Idea:
CCJ is probably the best player in this sector within the US; it has strong fundamentals, and great prospects:

Revenues Trend:


Earnings Trend:


Uranium is steadily rising since 2003, and this is probably nothing yet, the growing demand coming worldwide and the gap between production and demand will probably maintain this trend for a while.

Uranium Spot Price:


From a Technical point of view, CCJ is not probably the hottest stock out there, but I really like the pattern developing right now. CCJ is trading inside a big Triangulation pattern, and its reaching the tight area of the formation, it all looks like a big consolidation range, and something is going to happen very soon, I'm betting on a punch to the upside

Short Term Chart:


Long Term Chart:


With a pattern like this it's easy to setup a trading plan with not much risk and still with a strong potential in play. The main issue is a downside breakout, but even in this scenario the risk is still low. We want to hold CCJ at the end of this triangle, so we're adding it today.

Trading Plan:
Buy CCJ today at or near the open.

Regards,

[nullzero]

im in CCJ at 40.07 lets rock .

[Ramsburg]

im in CCJ at 40.07 lets rock .

Doing nice today Volume will probably surpass the recent average.

[Tirebldr]

Nice pick Rams. In twice @avg 40.099.  
Any particular target/stop in mind as yet sir?

[nullzero]

Ramsburg any PPS you were looking at exiting the position?

[Ramsburg]

Ramsburg any PPS you were looking at exiting the position?

I'd like to see the short term development before disclosing an exit strategy, the target of the triangle pattern is $54, probably difficult to get short term, but my goal is to trade this up swing the best way I can.

regards,

[AussieTrader]

This pick gets an applaud from me on 2 levels. 1) Nicely found chart pattern 2) Low risk high return ratio.

Finding low risk plays especially in the recent climate of breakout failures etc is what it's all about (unless you are in cash that is!!). The covergence of support around the 50sma and the break of that triangle gives CCJ a great chance at a run to $50.

[Ramsburg]

Update:
Nice start for this trade, we bought it inside the tight area of the triangle pattern, and in the same day a breakout occurs. Volume was great too, a bit above average but much stronger than the previous sessions, this candle suggests continuation, and momentum indicators are looking nice too.
Please note that I'm using a «filtered» descending line, skipping spikes and intraday highs, so this breakout may not be present for some technicians yet.
Taking in consideration the lower base of the triangle, we're setting an initial stop level a bit below that area; if price develops on our direction we'll then upgrade the stop, so the trading plan is:

Trading Plan:
Hold CCJ with a stop @ $38.00

Regards,

[Ramsburg]

Update:
CCJ had a nice advance last Friday, adding some momentum to this move and pushing CCJ to a new relative high, volume was good taking in consideration an overall light volume session on the broad market. Now we have a confirmed breakout, the pattern is triggered and we expect a new upside swing to be already happening here. The next resistance level is $42.25 (last relative high), support should be found at $40 (breakout zone) and $38.50 (ascending support), a re-test to the $40 level may happen (and that would be normal).
Our goal is to ride CCJ on this swing, trying to filter out the short term price noise, so the plan is will be the same:

Trading Plan:
Hold CCJ with a stop @ $38.00

Regards,

[tokyopua]

Update:
Nice start for this trade, we bought it inside the tight area of the triangle pattern, and in the same day a breakout occurs. Volume was great too, a bit above average but much stronger than the previous sessions, this candle suggests continuation, and momentum indicators are looking nice too.
Please note that I'm using a «filtered» descending line, skipping spikes and intraday highs, so this breakout may not be present for some technicians yet.
Taking in consideration the lower base of the triangle, we're setting an initial stop level a bit below that area; if price develops on our direction we'll then upgrade the stop, so the trading plan is:

Trading Plan:
Hold CCJ with a stop @ $38.00

Regards,

Doesnt matter how the trend line is drawn today, even taking into account previous intraday highs, we are looking at a definite breakout of the descending trendlines today!  Also, the last 3 days are close to a 3 White Soldiers pattern (granted its usually a reversal pattern, but there is a small downtred just reversed recently, so I will take it as another positive sign.  Good MACD and upward sloping moving averages... Just need a better volume in this baby and a breakout to all time highs seems in sight. 

[Ramsburg]

Doesnt matter how the trend line is drawn today, even taking into account previous intraday highs, we are looking at a definite breakout of the descending trendlines today!  Also, the last 3 days are close to a 3 White Soldiers pattern (granted its usually a reversal pattern, but there is a small downtred just reversed recently, so I will take it as another positive sign.  Good MACD and upward sloping moving averages... Just need a better volume in this baby and a breakout to all time highs seems in sight. 

That's true tokyopua, right now we have definitively a breakout

Update:
Another white candle on CCJ and we just got a «three white soldiers» candlestick pattern in place, this is a great bullish sign . CCJ also closed above July's relative high, giving another confirmation to the recent breakout.
We may watch some consolidation here (it would be normal), but the overall technical overview is very bullish.

Trading Plan:
Hold CCJ with a stop @ $38.00

Regards,

[Ramsburg]

Update:
CCJ went down for a retest on the breakout level. Not a nice move to watch when being long on the stock, but perfectly normal from a technical point of view.
Some news was behind this move:
- Cameco Revises 2007 Gold Production Forecast
But this is not really a big deal, taking in consideration the company main business...

On other hand Uranium spot prices were up almost 7% in a just a week, to a new high of $52 during the last posted price (Uranium prices are posted every week, as they are not traded in open market).

We'll keep the same plan here, as we expect CCJ to consolidate the recent highs and breakout for an upside swing soon.

Trading Plan:
Hold CCJ with a stop @ $38.00

Regards,

[Ramsburg]

Update:
No special developments for CCJ, the stock is still consolidating the recent breakout, so we'll keep the same trading plan:

Trading Plan:
Hold CCJ with a stop @ $38.00

Regards,

[shawFund]

CCJ has topped out. Best place to put your money is in tech sector now.

Commodity stocks have run up a lot and need to take a rest.

[WallStreetnBio]

CCJ is on sale and thought I would point it out for some of you guys to buy.  The bottom line for CCJ is that demand outstrips supply for uranium for many years to come.  CCJ has a lot of old contracts that they locked in uranium prices around $30. Now that spot uranium prices are over $130 they will stand to make much more money.  As these old contracts die off and these new ones take effect CCJ will be in bull mode for years to come.  I'm entering a position in CCJ now and will accumulate as time goes on.

Technical
Notice CCJ broke the 200 day moving average but look at the volume.  Some big buyers are stepping in and accumulating shares at these prices.