Cameco, a Canadian uranium producer based in Saskatoon, operates some of the world’s top-grade and cost-effective uranium mines. The company also has a substantial role in the nuclear fuel cycle with its refining, conversion, and fuel-manufacturing capacities.
According to the Elliott Wave analysis, wave (II) of the Super Cycle concluded at $5.17. Following this, wave (III) experienced a strong impulse upwards. Wave I ended at $62.55, with wave II retreating to $35. The stock then advanced, with wave ((1)) peaking at $110.16 and wave ((2)) descending to $77.7. The forecast suggests further growth if the price remains above $5.17, with anticipated support in a 3‑, 7‑, or 11‑swing structure.
On a daily scale, wave II ended at $35.72, and wave III began its upward journey. This series of upward movements is structured as a five-wave impulse. Within this progression, wave ((1)) reached $110.16, and a pullback in wave ((2)) completed at $77.7. As long as the $35.72 level holds, further short-term support is expected within a 3‑, 7‑, or 11‑swing pattern, favouring continuous upside movement.
We are seeing a clear impulsive structure forming in Cameco, suggesting that recent weakness is a corrective pullback rather than a reversal. Any dip towards the $77.70 support level should be viewed as a chance to initiate bullish positions. The broader trend indicates significant upward potential is building for the coming weeks.
This technical strength is supported by fundamentals, as the uranium spot price just crossed $145 per pound, driven by persistent supply deficits. Last year, in 2025, we saw multiple nations commit to expanding their nuclear fleets, underscoring a long-term demand story. This environment is highly favorable for a primary producer like Cameco.
Given this outlook, selling out-of-the-money put credit spreads could be an effective strategy for the weeks ahead. Using the recent low of $77.70 as a guide, traders might consider selling puts with strike prices in the $70 to $75 range. This approach allows us to collect premium while defining our risk, capitalizing on the view that support will hold.
For those seeking more direct exposure to the upside, buying call options is a clear choice, but implied volatility has been elevated. A more cost-effective approach could be using bull call debit spreads, which would help offset the high premium costs. This strategy positions traders for the next leg up towards and potentially beyond the prior $110.16 high.
The current setup reminds us of the powerful advances seen during the 2005-2007 cycle, where pullbacks were brief before the primary trend reasserted itself. While the immediate focus is on the $77.70 pivot, all bullish theses would need to be re-evaluated if the stock were to break below the major $35.72 support level. That price point remains our critical line of defense for the entire structure.
