Is Cameco showing a "symmetrical triangle" stock pattern?

I have been interested in the nuclear investment story as it seems compelling in the long-term (albeit potentially volatile if the very worst happens - think Chernobyl).

2007 saw bubble territory for the price of uranium and I decided to stay away. With prices back to much more reasonable levels, I am interested in the world's largest uranium producer, Cameco which has lost 30% of its value in the past 9 months. I would be buying as a long-term investment, not a 'trade'.

However I was interested to spot what looks like a symmetrical triangle pattern emerging since Jan2008, also with reducing volume, another signal. From some quick research, this pattern, when it comes during a downward trend (eg Cameco), suggests a continuation of this down trend once it breaks out of the triangle. However some say that this pattern is only valid if it breaks out within a certain time frame, but am not sure how this applies in this case.

Would be very interested to hear people's views on this.

Answers

Oldman answered a question in Technical Analysis.
2775 points

Oldman answered one year ago …

I took a quick look at the chart of CCJ on StockCharts.com; the price has cycled between about Us $42 and 32 4 time in the past couple of years...and by passive analysis, their charting suggests it's on track to go to 32 again. For a more gentle way to "invest" in Nuclear, you might look at PKN, a nerewr ETF that has purely nuclear (miners, refiners, reproccessors, and a closer focus than NLR).

Read more from Oldman