Uranium ETF Wave ForecastAMEX:URA
URA, the Global X Uranium ETF has completed the first wave of an impulse move, and is in the process of completing a Wave 2 correction.
Wave 2 appears to be a complex correction consisting of two corrective patterns. (Zig-Zag + Triangle)
The triangle is still in the process of completing it's structure.
(I also want to note the possibility that wave 2 has already completed a flat correction and that the triangle shown in this chart could be wave 1 & 2 of the 3rd wave of larger degree.)
Either way, price should begin rising sharply within the next month or two as it completes the triangle correction and begins Wave 3.
Or in the case that Wave 2 is a flat, Wave 3 of 3 could already be on it's way.
I've used a Modified Schiff Pitchfork to form a channel for the rest of this impulse move.
I've kept these projections pretty conservative, the actual move could be much larger.
Wave 3 is a 1.618 extension of Wave 1, and Wave 5 is only slightly larger than Wave 1.
(Wave 5 = .786 of Wave 3, compared to Wave1 being .618 of Wave 3)
Being that Wave 2 is a complex corrective pattern (zig-zag + triangle), I've projected Wave 4 as a flat correction.
(If Wave 3 begins very soon, it would be likely that Wave 2 was actually a flat. If this is the case, expect Wave 4 to be a Zig-Zag)
Disregarding any wave structure, price has formed a giant bull flag.
I'm going to be purchasing some long-dated call options on URA once price breaks out of this bull flag and begins Wave 3.
My conservative targets are Wave 3 = $60 and Wave 5 = $77
Fat_Fat