Hey traders, I want to share my idea on CCJ, the uranium mining company. I think this stock is showing signs of a pullback after a strong rally in the past few months. Let me explain why.
First of all, the price has reached a major resistance zone around $25, which was the previous high in 2011. This level is likely to act as a barrier for further upside movement. Secondly, the RSI indicator is showing a bearish divergence, meaning that the price is making higher highs while the RSI is making lower highs. This indicates a loss of momentum and a possible reversal. Thirdly, the volume is decreasing as the price is rising, which suggests that the buyers are losing interest and the sellers are gaining control.
Therefore, I think CCJ is due for a correction and I would look for short opportunities below $25. My target would be around $20, which is the previous support level and the 50-day moving average. My stop loss would be above $26, which is the recent swing high and the upper Bollinger band.
This is just my opinion and not financial advice. Please do your own research and trade with caution. Happy trading!
First of all, the price has reached a major resistance zone around $25, which was the previous high in 2011. This level is likely to act as a barrier for further upside movement. Secondly, the RSI indicator is showing a bearish divergence, meaning that the price is making higher highs while the RSI is making lower highs. This indicates a loss of momentum and a possible reversal. Thirdly, the volume is decreasing as the price is rising, which suggests that the buyers are losing interest and the sellers are gaining control.
Therefore, I think CCJ is due for a correction and I would look for short opportunities below $25. My target would be around $20, which is the previous support level and the 50-day moving average. My stop loss would be above $26, which is the recent swing high and the upper Bollinger band.
This is just my opinion and not financial advice. Please do your own research and trade with caution. Happy trading!