Cameco – Still Don’t Like CCO

Recommendation: Sell

Cameco was a great performer for me in 2005 and early 2006, but I’ve been out of it for a while now, and the chart makes it clear why we no longer own it.

Last week I published the one year chart; here’s the chart going back to the start of the bull market in 2004.

The downtrend clearly started in April (which of course was not obvious at the time, because hindsight is needed to see the top), and the uptrend going back to 2004 was clearly broken at the start of October (which was obvious at the time).

Despite the strength over the last week, the trend is still down, so I will wait for a new high (something above $50 Canadian) before I go fishing (nuclear fission?) again.