Cameco Corporation, a Canadian company, is a leading producer of uranium. This resource is crucial for the nuclear energy supply chain. Thanks to long-term contracts and a strong market position, Cameco is well-positioned as demand for clean energy increases. The monthly Elliott Wave chart for Cameco shows that a major correction, known as wave (II), ended at a low of $5.17. Since then, Cameco has started a new upward trend. The stock is currently in wave (III), having reached a peak of $62.55 in wave (I) and then pulled back to $35 in wave (II) by April 2025. We expect the stock to rise further and complete wave ((1)) of III, followed by a short pullback in wave ((2)) before continuing its upward path. Cameco is likely to keep rising due to the growing demand for nuclear energy. With a strong market presence, the company is set for growth as the world moves toward cleaner energy options. We’re witnessing the anticipated bullish cycle for Cameco, as the stock has been climbing since the wave (II) pullback to $35 in April. This upward movement signals increasing confidence in the nuclear energy sector. The current price trend is likely part of the first leg up, wave ((1)), within a larger wave III. The fundamentals support this outlook, with the uranium spot price soaring past $125 per pound in October 2025, a significant jump from earlier in the year. This increase is driven by supply concerns from Kazakhstan and new initiatives like the U.S. Department of Energy’s increased funding for small modular reactor (SMR) development announced last quarter. These factors reinforce the strong demand for uranium. In the coming weeks, traders may consider short-term call options to take advantage of the remaining upside as wave ((1)) approaches its peak. This strategy fits with the expectation of continued upward momentum in the near term. The goal is to profit from this leg before the expected pullback begins. We should be watchful for signs that wave ((1)) is nearing completion since the analysis predicts a pullback in wave ((2)). This will be the right time to take profits on bullish positions and possibly buy protective puts. The anticipated dip will create a better opportunity for entering long-term positions. Reflecting on the April 2025 low at $35, this was an ideal buying moment. The expected wave ((2)) pullback should be seen similarly. Once this correction finds its bottom, acquiring long-dated call options, such as those expiring in late 2026 or beyond, would be a smart way to join in on the most significant part of the uptrend, preparing us for the considerable gains expected in the heart of wave III.

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