Just a few weeks ago, we highlighted opportunity in uranium company, Cameco (CCJ). While it hadn’t moved much since then, it started to late last week. Still oversold on RSI, MACD, and Williams’ %R, CCJ was up about $1.85 on Friday. From here, we’d like to see it again challenge resistance around $52 a share.
Fueling further upside, uranium prices are still at 16-year highs because of massive supply-demand issues. Look at Kazatomprom, for example, which warned it’ll fall short of production targets over the next two years.
Plus, according to the Kazakh uranium mining company on February 1, “It will produce only 80% of its permitted maximum uranium output allowed under Kazakh subsoil usage contracts, instead of the previously announced 90% level, due to difficulties procuring sufficient levels of sulfuric acid, a key ingredient in the company’s in-situ uranium mining process,” as noted by S&PGlobal.com.
Meanwhile, global demand for uranium is only set to rise.
