Updating a post from three weeks ago on NexGen Energy (TSX:NXE, NYSE:NXE) we have seen NXE rally up to test resistance near C$3.40 and subsequently consolidate within a range between C$3.10 and C$3.35:
NXE.TO (Daily)
Since making a low at C$2.85 on May 4th NXE has experienced a steady accumulation as evidenced by 4 accumulation days out of the last 11 trading sessions and a strongly upward trending Money Flow Index (MFI). The Relative Strength Index (RSI) is also poised just above the median line and appears to be locked & loaded for the next leg higher. Above C$3.40 I could see NXE quickly moving up to the next area of resistance near C$3.70, whereas, a daily close below C$3.00 would indicate a longer base building process will be needed.
While NXE is drilling away at Arrow and a steady flow of drill results can be expected throughout the second half of 2017, the next major catalyst on the horizon is likely to be the release of NexGen's maiden PEA (preliminary economic assessment) which the company has indicated will be released before the end of the year.
With its new listing on the NYSE (NXE shares began trading on the NYSE last week) NXE now arguably becomes the "go to" stock (the stock which hedge funds pile into when they want uranium sector exposure) in the uranium sector, potentially surpassing Cameco (TSX:CCO, NYSE:CCJ) the longtime go to stock in the uranium space.
Disclosure: The author is long NXE at the time of writing.
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