Cameco is a Canadian uranium producer based in Saskatoon. It runs some of the best and most cost-effective uranium mines in the world. The company also plays an important role in the nuclear fuel cycle, involving refining, conversion, and fuel manufacturing. According to Elliott Wave analysis, wave (II) of the Super Cycle finished at $5.17. After that, wave (III) surged upward. Wave I peaked at $62.55, while wave II dropped to $35. Then, the stock rose again: wave ((1)) hit $110.16, and wave ((2)) retreated to $77.70. The forecast indicates more growth if prices stay above $5.17, with projected support in a 3-, 7-, or 11-swing pattern. On the daily chart, wave II concluded at $35.72, marking the start of wave III’s upward movement. This sequence is organized as a five-wave impulse. During this, wave ((1)) reached $110.16, and wave ((2)) pulled back to $77.70. If the $35.72 level holds, we can expect short-term support in a 3-, 7-, or 11-swing pattern, which favors further upward movement. We’re observing a strong impulsive structure in Cameco. This suggests that recent weakness is just a corrective pullback, not a trend reversal. A dip to the $77.70 support level is an opportunity to enter bullish positions. The overall trend indicates that significant upward potential is developing in the coming weeks. This technical strength aligns with strong fundamentals. The uranium spot price has recently surpassed $145 per pound, driven by ongoing supply shortfalls. In 2025, multiple countries committed to expanding their nuclear fleets, highlighting long-term demand. This situation is very favorable for a leading producer like Cameco. Given this outlook, selling out-of-the-money put credit spreads could be a smart strategy in the upcoming weeks. With the recent low of $77.70 as a reference, traders might think about selling puts with strike prices between $70 and $75. This approach allows us to earn premiums while managing risk, based on the belief that support will hold. For those wanting more direct exposure to the upside, buying call options is a straightforward option. However, implied volatility has been high. A more cost-effective strategy might be to use bull call debit spreads, which can help reduce premium costs. This strategy prepares traders for the next upward movement towards and possibly beyond the previous high of $110.16. The current situation is similar to the significant advances seen during the 2005-2007 cycle, where pullbacks were short-lived before the main trend resumed. While we’re focused on the $77.70 pivot now, we’ll need to reassess all bullish scenarios if the stock falls below the critical support level of $35.72. That price point acts as our key defense for the entire structure.

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