Cameco Corp forms bullish "Head and Shoulders Bottom" chart pattern
Jan 15, 2013
Recognia has detected a "Head and Shoulders Bottom" chart pattern formed on Cameco Corp (CCO:TSX).
This bullish signal indicates that the stock price may rise from the close of $21.16 to the range of $24.20 - $25.00. The pattern formed over 79 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: The price seems to have reached the end of a period of "accumulation" at the bottom of a major downtrend; the break up through resistance signals a reversal to a new uptrend. The Head and Shoulders Bottom is created by three successive declines in the price following a significant downtrend. The lowest low (head) is in the middle, flanked by two higher lows (shoulders) at roughly the same level. Volume is highest as the price makes the first two declines, then diminishes through the right shoulder. Finally volume surges as the price closes above the neckline (drawn between the two highs) to confirm the reversal.
This bullish pattern can be seen on the following chart and was detected by Recognia proprietary pattern recognition technology.