UEX.TO (TSX) Uranium Stock Bullish Flag Pattern

by Olivier on November 3, 2010

Another Uranium stock found its way into my portfolio. UEX.TO – UEX Corp is another high grade Uranium player operating in the Athabasca basin in Saskatchewan, Canada. The Uranium sector is one fire and has a lot more room to run. The sector has been completely beaten down and it is clearly one of the underowned commodities. The fact the Uranium price is starting to move up out of a long base and the fact almost all stocks within the sector are also coming out of long bases makes me extremely bullish for the whole sector. I feel stressing the fact we might witness the early stages of a Uranium turnaround is starting to get repetitive. Then again I am starting to read quite a few articles out there pointing out Uranium is ‘the next big thing after gold’. Maybe spot on. Time will tell. Let’s move on to the charts.

URRE – Uranium Resources was up around 30% today. The chart was displaying the exact same technical characteristics UEX.TO is displaying right now. The usual stuff I am typically looking for:

  1. Thrusting move on huge volume
  2. Consolidation pattern on decreasing volume. Typically a flag, triangle or pennant pattern.
  3. Resumption of the trend leading into the consolidation pattern. Ideally with volume picking up as well.

UEX.TO will close its recently announced private placement in roughly 3 weeks. The stock might need more time before it can break out but I m not sure it will wait until the private placement actually closes. I expect UEX.TO to move in unison with its Uranium peers i.e. busting out to the upside like URRE did today. Technically speaking the chart looks extremely bullish.

UEX.TO TSX Bullish Flag Uranium Explorer Technical Analysis Stock Price Chart Pattern

Up-to-date UEX.TO – UEX Corp. chart on my public list.

I have now added a third Uranium sector overview chart. That will make it much easier to monitor the entire Uranium sector:

If the Uranium stocks keep acting well and if they behave like I would expect them to, I might add another Uranium stock to my portfolio. Not sure yet. No need to rush things.

www.uex-corporation.com : UEX Corporation is a Canadian uranium exploration and development company formed under agreement between Cameco Corporation and Pioneer Metals Corporation. UEX began trading on the Toronto Stock Exchange in July 2002 and is an active explorer in the Athabasca Basin in northern Saskatchewan, which is the most important uranium-producing district in the world, accounting for approximately 20% of global primary uranium production in 2009. UEX has a total of 19 projects either 100% owned, joint ventured or under option totaling 338,972 hectares (837,618 acres) located in the eastern, western and northern perimeters of the Athabasca Basin.
UEX operates its 100%-owned Hidden Bay Uranium Project, Riou Lake Uranium Project, and Northern Athabasca Projects. UEX also operates the Black Lake Uranium Project, which is a joint venture with AREVA Resources Canada Inc. (“AREVA”), 89.96% UEX – 10.04% AREVA as of December 31, 2009. The ten Western Athabasca Projects, including the Shea Creek Project, are joint ventures where UEX holds a 49% interest and AREVA holds a 51% interest, which are operated by AREVA along with the Beatty River Project which is under option from the Japan-Canada Uranium Company, Limited.
UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne and Colette Deposits at its Shea Creek Project, a joint venture with AREVA in the western Athabasca Basin, and the Horseshoe, Raven and West Bear Deposits at its 100%-owned Hidden Bay Project in the eastern Athabasca Basin.

A man should look for what is, and not for what he thinks should be. – Albert Einstein

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

Buenas noches!

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