Did not expect this just a few weeks ago but it did make sense. This is a expanding diagonal that should retrace in full, implying a move back to $30 or even $32 as a minimum. My guess is that the entire structure is an A-B-C where C is vector equal to A.
Yesterday’s announcement by Germany that it will discontinue nuclear power generation some 15 years earlier than previously thought, brought the stock down by about a dollar and it is possible that a diagonal 9 as shown) could form. However, it is not clear how they will pull this off and some cynics conclude that it is little more than posturing to get the Greens on side on another Greek support proposal. I do not think a diagonal will form, but it could.
It is quite possible that no further moves down are coming; the red line connecting the lows may have done its work by providing support. A look at uranium itself makes this very plausible;
According to InfoMine.com the stuff hit a low of about US $ 40 per pound around June of 2010 well before anything had happened at Fukushima, Japan. Recently China’s nuclear Energy Association announced that it will boost atomic capacity 8 times by 2020. India announced a similar expansion of production of electricity using nuclear fuel 13-fold by 2030.All of this should lead to a doubling of the demand for the fuel, never mind what other countries will do.
Cameco would ideally have another small leg down but the possibility definitely exists that the drop is done. A very shallow diagonal may have formed and the triangle shown earlier may not exist. Unfortunately I cannot get the necessary detail on these charts.
My guess would be that we are already on the way up if we break $27.25 in which case the big fat line referred to earlier turned the tide.