CCJ faces a head and shoulders risk with a potential drop to $40.47 if the $85.61 neckline breaks, though a move above $102.99 could lead to gains toward $118.

Next is CCJ stock. Now, CCJ, as you can see here , this is the weekly timeframe, but today's move saw impressive gains of 6.35%. But I'm starting on the weekly timeframe to show you that we have a head and shoulders pattern, guys.

I told you she looks like Roy Kent; she's literally on all these charts everywhere. However, we are not breaking the neckline. And today's neckline. As you can see with this current shoulder or gap in the head and shoulders pattern, we have at least been saved and have performed very well this week.

But guys, we can still move sideways and then break. So keep in mind this breaking point for this neckline for a downward move. It's $85.61. This type of break could take us back completely to the bottom of this parallel channel at around $40.47.

One way CCJ can get out of the mess it's currently in is by breaking through the current downtrend line on the chart. This will help distort that right shoulder and move the price further away from that neckline.

So CCJ, if you're optimistic about it, you want to push the price above 102.99 with conviction, because that's not the only resistance that could limit gains on this right side of the head and shoulders pattern.

Look, it looks like a fan. It moved from one pivot peak to the next pivot peak, then a near-term breakout scenario with this other downtrend line. So, this is the first conflict level at around 102, and the second level as well.

Once we can get past that, if possible, it will open the way for the price to start rising and climb towards the $118 level . So, if you are optimistic, you should keep an eye on these two direct trend lines that I have highlighted .

This will help you stay on the right side of the deal.