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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@Goldfinger@Excelsior A MACD bear crossover doesn't concern me in itself, I focus on price action first above all else and technical indicators are secondary. My base case is that $URA will consolidate in sideways-to-lower fashion for several weeks, hence my "intermediate term top" post last week and taking a short position on the day the sector peaked. The way the pullback has played out both in terms of volume and trajectory leads me to believe there won't be a crash, the sector will have a mild correction before the next leg higher begins. $CCJ$CCO$NXE$uranium
@Excelsior@Goldfinger - Thanks for the response on $URA that is good to hear. I thought you raised a good point with the declining volume on the pullback as well. In addition, it is bullish that the 50 day EMA has crossed up through the 200 day EMA to the upside. The MACD is a slightly lagging indicator, but it crossing does mark trend changes to the upside and downside more often than not. (It could just be a small downturn though, where it weaves closely together)
I'm liking your thinking on the mild correction in #Uranium miners before the next leg higher.
@Goldfinger@Excelsior MACD will often cross multiple times during a period of oscillation, $URA is experiencing a trend change but necessarily the beginning of a downtrend, it could be a sideways trend. If the rally which ended last week was a blow-off top we would be seeing a lot more volume and downside price action than we have seen. Another 5-10% of downside would still be healthy and help to reset market sentiment and expectations, doesn't mean we'll get it though ;) $uranium
@Excelsior@Goldfinger - Agreed on the healthy reset of the #Uranium market sentiment and expectations. Yes, when I mentioned it could just be a small downturn in $URA where the MACD weaves closely together, that was referencing a sideways consolidation where it would cross multiple times. We're on the same page there. However, if it crosses and doesn't start weaving and consolidating then..... (Likewise, if the MACD doesn't cross and just charges higher then..:-)
"It's gonna be a really big show...."
@Goldfinger@Nick This is the sort of "kitchen sink" news we see at major market bottoms. The main concern is that it could push out the "turn" in $uranium supply/demand past 2020 which would be a pretty big negative for the sector as a whole. If Tepco doesn't buy those 10 million lbs from Cameco then someone else must, and at much lower prices, so more supply comes onto the market. If it's contained to just this one contract then it's minor news, the concern is that more contracts could be scrapped which would be a major negative for the sector as a whole. $CCJ$CCO$URA
@Excelsior@Pon - It's hard to imagine #Uranium going back below $18 again (although anything is possible in resource investing); but it would appear that the bottom was the end of 2016.
Will it be a rapid rise up in pricing? Not likely, due to the oversupply situation, and while pricing may muck around in the $20's for a while, the trend will be heading up going into 2018 and beyond.
Could the uranium market be getting a bit ahead of itself at current levels? I recommend investors pull up a 5 year or 10 year chart and look at the recent move up coming out of late last year. It's just a little blip, and needs to be put into perspective.
The average investor (even the gold & silver investors that thought their bear market was bad) just don't realize just how extreme the move down in these miners has been since 2011.
For the miners to have clawed back a little bit is encouraging, and for those invested it seemed like a big move (and it was), but relative to the increases that will happen to many of these miners, this wasn't even the first inning of the game.... it was just the first base hit. ;-)
This chart that goes back to 2011 should at least put things into perspective of where we are today with #Uranium Miners, and how the recent rally factors into the big picture.
@AaronOne has to assume that this sudden dip (correction) will last only a short time and recovery in price will happen just as quickly? We got awesome news yesterday on drilling step outs (yet we go down - go figure) and PDAC,upcoming NYSE listing, and the coming up RE2 issuance shortly. Beautiful day for those with extra powder 💥 to buy with. Plus, as @Goldfinger stated we approaching 50 mda in $ura. #itsallgood
@Excelsior@Vaughan - will do. I'll be watching the slow stochastics RSI & ADX for an early signal, and then look at the MACD for confirmation as a lagging indicator.
Here is the $URA chart at present showing the RSI heading down (but not quite oversold yet until it gets below 30) and the Slow Stochastics still heading down into oversold territory (I'd like to see that cross first, but not get embedded). #Uraniumhttp://stockcharts.com/h-sc/ui?s=URA&p=D&b=5&g=0&id=p80894542383
@tcu$GXU held the critical 61.8%. Fibonacci retracement level. Big volume day. $URA also had a good day with good volume. Looks like we may have a second bull run in what will be A very long, amazing ride
@tcu$URANIUM and $URA looking like another rally coming this week. With more japanese restarts coming online, this will reduce supply being tossed on the market. Russia also cutting production from kazak top producer. Looking good! Glad I bought a bunch more $GXU the last week! What a purchase, very very cheap