Uranium U.TO (TSX) – Idealized Price Chart And Trade Entry Thoughts

by Olivier on August 16, 2010

This is what I am looking for when it comes to Uranium. It looks like we are bottoming and might be witnessing the early stages of the Uranium turnaround. Talking about stages, the chart depicts what would be an idealized entry within Stage 2 (cf. Stan Weinstein) if Uranium was indeed to move up significantly.

The advantages of this kind of entry would be the following:

  • no anticipation of a move that might not come
  • a rising MA 30 and a stock in Stage 2 offer the best potential for great thrusting moves

As depicted in the chart, wait for the following to happen:

  1. Wait for a thrusting move.
  2. Wait for a consolidation pattern.
  3. The Moving Average 30 needs to be moving up.
  4. Buy the first pullback towards the rising MA 30.

Click on the chart for a bigger chart:

Uranium Market U.TO TSX Participation Idealized Chart Entry Stage 2 Stock Technical Analysis Price Turnaround

Up-to-date U.TO chart on my public list.

Keep in mind the main ingredient for powerful moves to the upside is a RISING MA 30. Any moving average will do as long as it is a slow moving average. This is not about predicting the future, it is simply outlining factors I am looking for when I look at charts. The following two quotes describe the difference between predicting and reacting pretty well:

To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.Jesse Livermore

My public list with all my charts can be viewed here:

Buenas noches!

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