CCJ dominated by bears dragging the market lower throughout the day
Cameco Corporation (CCJ) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CCJ finished Wednesday at 8.77 tanking $0.22 (-2.45%), strongly underperforming the S&P 500 (0.19%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 8.90, the market confirmed its breakout through the previous session low after trading up to $0.13 below it intraday.
Daily Candlestick Chart (CCJ as at Jan 15, 2020):
Wednesday's trading range has been $0.25 (2.78%), that's slightly above the last trading month's daily average range of $0.22. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CCJ.
Two candlestick patterns are matching today's price action, the Bearish Closing Marubozu and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on January 9th, CCJ actually gained 3.95% on the following trading day.
Prices are trading close to the key technical support level at 8.71 (S1). Cameco closed back below the 20-day moving average at 8.89 for the first time since January 9th.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 8.56 where further sell stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Closing Marubozu" stand out. Its common bearish interpretation has been confirmed for Cameco. Out of 8 times, CCJ closed lower 62.50% of the time on the next trading day after the market condition occurred.