By Licia Leslie
January 15, 2025
Hi Shoppers,
Cameco Corporation (Ticker: CCJ) has traded down from the top of the pitchfork to the last rung of support with a change in trend candle:
Monday’s candle, sitting right on support, is an inverted hammer and could be signaling a change in this downtrend.
Tuesday’s action has provided confirmation of a rally from here.
Now the 200 day moving average is sitting just above here at $49.67, so wait for the stock to clear that level.
Looking at the options, I like the Jan31 expiration:
With that $.40 rally and the CPI news being reported, the implied volatility should come down in here.
I recommend you wait for that implied volatility to come as these calls are a bit pricey.
I will be looking at the 50 calls for around $1.60 – $1.70.
Trade Review
I last wrote about how important the support level $5868 in the S&P 500 (Ticker: SPX) is being the neckline of a possible head and shoulders pattern.
And sure enough we have closed below that starting Friday. Yesterday’s rally stopped just below $5872.
Keep your eye on this level, it will determine our next direction.
Thank You For Reading … See You Next Tuesday,
Licia Leslie
Licia Leslie
Head of Technical Analysis
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