Broke above the cloud today but was rejected by the upper trendline. Flies to the moon once it breaks. A very safe American uranium producer with one of only 3 licensed uranium mills in the USA. Another one that will benefit greatly if/when HR1042 passes.
Time horizon is 1 year minimum. Price target is $30+. Don't try and get cute by trading these equities, the train will eventually leave the station and I believe it is imminent.
I am very passionate about the uranium bull market in progress, feel free to ask me anything.
I think someone out there, God maybe, read this post and said... "no way, not yet!" All joking aside, is there any obvious reason for the rapid decline since you made this post? I follow this stock closely and certainly did not expect this drop but I'm not necessarily worried about it at this point either. Just curious what your thoughts might be as to the driving force behind this change. Thank-you for your time.
bbruzzese1
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@phreum, Lol, this didn't work out at all! All uranium stocks have been getting massacred the past few weeks and there is no clear reason why. Nothing has changed fundamentally with the uranium bull thesis. Technically, all the charts look very bad across the sector and would indicate a much larger pullback from here, even though spot uranium is holding up well near all time highs. Sentiment is in the toilet, I hope that means a turnaround is near!
A few hypotheses have been put forth, but it's all speculation: 1. People are just taking profits from all uranium positions after the recent highs. That would include the large ETFs which have UUUU as a holding. This sucks in the short term but would indicate that the uranium story is not well understood yet and large funds have yet to step in, so we are still just too early. 2. Retail is getting tired of the uranium trade and has lost patience with it entirely. People were front-running a Russian uranium ban which seems to be unlikely at this point. 3. Goldman Sachs recently announced they will launch a derivatives market for trading physical uranium, which would increase overall volatility and allow for manipulation by hedge funds in such a small sector. It could be that the big boys are pushing the prices of everything down in order to position better before a rip higher.
Sorry I don't have an answer, wish I did! I plan to hold for many years so it is not too troubling in the long run. Good luck my friend!
chrisjohnreed09
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@bbruzzese1, these guys will be first out producing uranium. plus if uranium goes up another bonus.
All joking aside, is there any obvious reason for the rapid decline since you made this post? I follow this stock closely and certainly did not expect this drop but I'm not necessarily worried about it at this point either. Just curious what your thoughts might be as to the driving force behind this change.
Thank-you for your time.