AMEX:URA and uranium stocks have done very well after breaking out of a long consolidation. This perspective looks at a potential scenario for the sentiment cycle with Fibonacci confluence zones and volume weighted average prices anchored to key areas.
AVWAPs anchored to the 5/31 breakout, sentiment shift in early October, and early November align to areas that we would look for a subtle and overt warning, and a shift from disbelief to panic. Should this result in a further drawdown we will likely see 24.5-26 act as support before a recovery. In a more violent sell off we'll look for 21.10-21.80 to hold. The next overhead resistance should begin between 32.60-35.39.
I agree with this. This is needed to flush out the hot money and reset the neg divergence. Do you still think the long term trend is up? how long do you forsee this correction?
Ben_1148x2
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@AxeCapp, great question. Time is most challenging to accurately forecast. If we take a fib time zone from 9/29 to 10/16 we can align with most of the pivots and the February high. The next ones would be 4/25/24 and 8/30/24. It's likely that we'll see some kind of shift on one or both of those.