While AMEX:URA isn't a perfect tracker of the Uranium futures market, it is one of the better ways to capitalize on the commodity as Uranium sets up on the weekly chart as well.
What I've noticed is that a low was established in 2016 along with an oversold condition in the and has been respected when recently tested on a false break out to the downside. This creates a good case for a long term bottom in the market and potential for the start of a Uranium bull market.
Price has been squeezing down since Feb of 2017. That's 2 years of coiling price waiting for a breakout. What we saw in December was a breakout to the downside rejected when faced with it's all time low. This is a good sign.
Price has now reversed and broken to the upside of the . This is also a good sign.
Along with a bottoming formation, an Oversold , and a Breakout, has increased dramatically for AMEX:URA . This is a sign that there may be some interest entering the Uranium market after a long 11 years.
While these are signs for AMEX:URA , there are still some risks that Uranium could linger at the bottom for a number of years:
- Lack of Interest in Uranium
- 100 and 200 Weekly MA Resistance
It is possible this breakout is shut down by the 100 and 200 MA, and we linger at the bottom for a number of years. Even so, this is a great time for me to accumulate for the longer term.
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Nothing in this post shall be taken as person financial advice. This is personal opinion and educational content only.