Hamilton's E-Wave Analysis

CCO , Cameco update

CCo may 2011 big

Cameco is performing in a text-book manner with each and every wiggle conforming to EW rules and guidelines. Here is a refresher. The stock did an A-B-C counter-trend rally after the lows of Oct 2008 at roughly $15. This may only be part of a much bigger correction, we simple do not know. But the stock will have gone down in 5-waves from the $44 high and should therefore rebound perhaps by one half of the drop, about $10 to $11 depending how low we go. Today we are on the big fat line connecting the lows and that may hold were it not that the pattern is not (yet) complete. A minor 4th and 5th wave (of 5 ) still seem to be needed which could take the stock to the $22 level. This is the extreme so it might be smart to buy a little above that. The gap-in-the-middle-theory would suggest $24 as ideal.

The target is at least at $32 which is where the gap starts closing and where there is a triangle wave 4 (of 3), both “normal” targets. Even at today’ price that would be a nice return, assuming this is correct.