Quick post on Uranium as DNN / DML.TO – Denison Mines recently found its way into my portfolio. U.TO – Uranium Participation is a great proxy for Uranium prices. One of the advantages is you get the chance to do a volume analysis. The purely price-based analysis of Uranium spot prices doesn’t offer that additional piece of information.
That being said, the whole sector is starting to see volume coming in and lots of Uranium stocks are starting to break out of long bases:
- UEX.TO – UEX Corp. would be an example of a chart acting well.
- URE.TO – Ur Energy is one that broke out today and printed a bullish candle.
- CCJ / CCO.TO – Cameco made a decent move to the upside on Friday last week.
It is still early in the game and the Uranium turnaround is still more or less a guessing game. Definitely not a momentum or trend-following approach at this point in time. Technicals are starting to improve though. Evidence is mounting that pressure is starting to build in the Uranium realm. U.TO – Uranium Participation is starting to look like the Moving Average 30 on the weekly price chart is about to start trending to the upside. Some more consolidation and an ensuing breakout from these levels will most likely force the MA 30 up. Not the time to bet the farm but getting a toe in is worth a try.
Up-to-date U.TO – Uranium Participation chart on my public list.
- Uranium Turnaround
- Uranium: Trade entry thoughts
- Uranium Sector Overview Chart I.
- Uranium Sector Overview Chart II.
Take care of your losses, and the profits will take care of themselves.
My public list with all my charts can be viewed here:
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2791469
Buenas noches!
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