Cameco Corporation Looking Overbought
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Topic: Uranium Mining Stocks — May 7th, 2009
Chart courtesy of StockCharts.
This a quick note to say that we are still watching Cameco with the view to shorting this stock via the purchase of a few ‘PUT’ options. From the chart we can see that Cameco’s progress appears to have slowed and could now be ready to retrace a few steps.
We will watch the next trading session with great interest as the opportunity to short this stock on the basis that it will experience a little correction is now upon us. We are looking for Cameco to drop back to the 200dma level which stands at around $20.00 at the moment.
The RSI is in the overbought zone which suggest a U-turn for the stock and
the MACD and the STO are also close to the top of their respective ranges.
Nothing is certain so we will not be risking a lot on this one if and when we do move but we do think that the scales are tipped in the favour of a correction.
Have a good one.
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The uranium bull market have just begun!
(or bear market bounce)
It’s way too early to short IMO, could be minimal pullback although I don’t see the Risk-Reward there. I would consider buying on dips with leverage. Overbought means nothing in bull market going against the trend is always scary.
I think its consolidation time before the next upleg:)
One of my uranium juniors up 700% ROFL
The scray part is when the S&P hits 1050(50%retracement) then everybody will be cluless..
GLTA
Comment by rblan1 — May 8, 2009 @ 5:46 pm
i am stying away from ccj completely, mainly because their ‘greatest asset’ is proving to be literally ‘a lake’ on the other hand, all the junior have been set up to march upward from panic lows or be acquired as the need for uranium escalates with 200 nuclear power plants coming online in the next few years…good ‘radiating’ luck to you.
Comment by richard mruz — May 9, 2009 @ 12:32 pm