UEC passed through the last zone of support, and found it again at $3.54. The 1D chart shows this is within the regression trend, and if the trend continues the next move should bring it to $3.80 or so. At this point, I hope to see it exit the channel to the upside, but there is now a resistance line at $3.90.
However, given the global energy picture and US policy, the future seems secured for uranium. "Uranium futures traded around $46 per pound, not far from the 2-week high of $48.15 touched on November 15th, as investors anticipate uranium demand to rise as energy firms are set to phase down coal usage following the COP26 deal in Glasgow. Recently, China reported plans to build up to 150 new nuclear reactors over the next 15 years, while Japan plans to put 30 reactors back to activity to meet emission goals. On the corporate front, the TSX-listed Sprott Physical Uranium Fund has gained 44% since its inception in July, while NYSE MKT-listed Uranium Energy has acquired USD 112 million in uranium assets from Uranium One, the world’s fourth-largest uranium producer. Meanwhile, the World Nuclear Association projects uranium demand to reach 206 million pounds in 2030 and supply to drop 50% by 2030 due to lack of investment in new mines." (tradingeconomics.com/commodity/uranium).
Uranium price is is down from the global ATH of $140/lb in 2007, and emission requirements and anti-oil and coal policy make it attractive.
However, given the global energy picture and US policy, the future seems secured for uranium. "Uranium futures traded around $46 per pound, not far from the 2-week high of $48.15 touched on November 15th, as investors anticipate uranium demand to rise as energy firms are set to phase down coal usage following the COP26 deal in Glasgow. Recently, China reported plans to build up to 150 new nuclear reactors over the next 15 years, while Japan plans to put 30 reactors back to activity to meet emission goals. On the corporate front, the TSX-listed Sprott Physical Uranium Fund has gained 44% since its inception in July, while NYSE MKT-listed Uranium Energy has acquired USD 112 million in uranium assets from Uranium One, the world’s fourth-largest uranium producer. Meanwhile, the World Nuclear Association projects uranium demand to reach 206 million pounds in 2030 and supply to drop 50% by 2030 due to lack of investment in new mines." (tradingeconomics.com/commodity/uranium).
Uranium price is is down from the global ATH of $140/lb in 2007, and emission requirements and anti-oil and coal policy make it attractive.
Comment:
I have $3.50 calls in for late January. If the price moves to the top of channel, I may close these calls in favor of a longer time horizon.
Comment:
Wew, we just cannot catch a break in this market. At any rate, looking for a move from the regression trend. Not there yet.
