CCJ: Market May be Signaling Something Big (Long Term)
CCJ is one of the largest Uranium miners in the world. Uranium had a terrible decade, especially with the Fukushima disaster in 2011. However, while nuclear energy has largely been unpopular in the west, China and India have been building and planning more reactors. Additionally, with major updates to reactor designs, the US and elsewhere have seen a resurgence of interest in nuclear power.
The chart shows that CCJ's price has rebounded recently off of its long term floor. Monthly volume on CCJ has increased significantly and the monthly RSI has moved into the overbought zone similarly to when it moved that way in the early 2000s. The market seems to be anticipating a large bull run in the Uranium market in the coming years. While I think the stock may be a bit overheated on the short term (see the red bubble markers), I will be looking at possible entries this summer if it moves back to its 50 or 100 day EMAs.
The chart shows that CCJ's price has rebounded recently off of its long term floor. Monthly volume on CCJ has increased significantly and the monthly RSI has moved into the overbought zone similarly to when it moved that way in the early 2000s. The market seems to be anticipating a large bull run in the Uranium market in the coming years. While I think the stock may be a bit overheated on the short term (see the red bubble markers), I will be looking at possible entries this summer if it moves back to its 50 or 100 day EMAs.