Starting from about $194 we thought this stock was done on the upside. Too early perhaps but it is down almost $8 overnight and may have started the climb down. This is a momentum stock and a blue chip supposedly. At $250 bln. capitalization it is definitely one of the “generals”. Watch the trendline at about $200.
The nice thing about getting stopped out is that you can do the same foolish thing again without loosing too much;
Between here and $11 this stock is a buy, if only for a nice dead cat bounce of 50+%. The 4th wave of previous degree is presumable at the $11 level, the stock is already trading with a $14 handle so there is about $4 room left to manoeuvre. At a glance you will notice that waves 5 and 1 of C are about the same size, a common feature. The 5th wave itself seems to be subdivided in 5 waves and therefore may be complete. In all events use a stop loss a few dollars below the buy level but not below $11.
Sony (SNE)at about the same level may be a better bet. It is down a lot more if that is criterion.
Then (June) and now charts of Cameco. Still looking for $30 or so sometime in the future. We are probable in an a-b-c correction, that is in the worst case, that has a very long and tedious a-b-c as a b, There is a distinct triangle in the b!. We are close to the old lows of $17.25 so if you were to buy this at say $18 with a stop at $17 you would risk a single dollar against a potential gain of $12 or so. That is a very respectable risk/reward ratio. Chose your own tolerances and methods but which ever way you slice it , this looks like a buy to us.
Do use a stop as lower levels are still possible, see longer term charts in previous blogs.
No point in counting any of this. Suffice it to say that we now have some sort of triple bottom around $6.50. Coming from $55+ this is clearly something you would not have wanted to own from the March 2009 lows. Today is a different matter, it may save your bacon.