Uranium spot prices have been bouncing along a bottom near $26/lb for the last several months:
The recent drop below $26/lb followed by quick snapback above have the makings of a failed breakdown, particularly when considering the significant momentum divergences in recent weeks.
Looking at the URA (Global X Uranium ETF) we can see that a major long term bottom has been forming for more than a year:
URA (Daily - 2 year)
Over ~$16 URA targets ~$20 (~38% higher than current levels) and the descending triangle pattern which has formed in recent months looks to be ripe for resolution:
Above ~$14.75 targets a move up to test the April highs and longer term resistance near $16.
There are indications in both the uranium spot price chart and the URA (uranium miners) that a major bottom for this beleaguered sector could be at hand.
DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher ofEnergyandGold.com. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.comfor important risk disclosures. It’s your money and your responsibility.
