Insights 
VT 
Cameco Corporation, based in Canada, is a major global producer of uranium, essential to the nuclear energy supply chain. The company benefits from long-term contracts and a robust industry position as demand for clean energy rises.
The monthly Elliott Wave chart for Cameco indicates completion of a major correction, labelled wave (II), at a low of $5.17. Following this, Cameco has embarked on a new bullish cycle. The stock is advancing in wave (III), having peaked at $62.55 in wave I and pulled back to $35 in wave II by April 2025. A subsequent upward movement is expected to complete wave ((1)) of III, followed by a pullback in wave ((2)) before resuming the uptrend.
Cameco is expected to sustain its upward trajectory, leveraging demand for nuclear energy. With a solid market position, Cameco is poised for growth as the world shifts towards cleaner energy solutions.
We are seeing the bullish cycle for Cameco play out as anticipated, with the stock advancing since its wave II pullback to $35 in April of this year. This upward movement reflects a growing confidence in the nuclear energy sector. The current price action is likely part of the initial leg up, wave ((1)), within a much larger wave III.
The fundamental backdrop strongly supports this view, as the uranium spot price has surged past $125 per pound in October 2025, a significant rise from the start of the year. This rally is fueled by recent supply concerns out of Kazakhstan and new government initiatives, like the U.S. Department of Energy’s increased funding for SMR development announced last quarter. These factors reinforce the underlying demand story for uranium.
For the coming weeks, traders might consider near-term call options to capture the remaining upside as wave ((1)) pushes toward its peak. This strategy aligns with the expectation of continued upward momentum in the short term. The goal is to capitalize on the current leg before a corrective pullback begins.
We should remain vigilant for signs that wave ((1)) is completing, as the analysis forecasts a subsequent pullback in wave ((2)). This would be the time to take profits on bullish positions and potentially purchase protective puts. The expected dip will offer a more favorable entry point for longer-term positions.
Looking back, the April 2025 low at $35 was a prime buying opportunity, and the anticipated wave ((2)) pullback should be viewed similarly. Once that correction finds a bottom, establishing positions with longer-dated call options, such as those expiring in late 2026 or beyond, would be a strategic way to participate in the most powerful phase of the uptrend. This prepares us for the substantial gains expected in the core of wave III.
