Uranium Stocks Opportunities
Traditionally there has been a close correlation between the fate of the Dollar and Uranium but the recent price action as shown above has seen Uranium show independent strength.
This not surprisingly has a direct impact on Uranium miners. A look at the price of Uranium itself shows that having failed a month or so a go at the weekly black line resistance, it has now manged to push through that point and accept a higher value. If it continues to do this there is space for a substantial rally to the next target at 269.
There are two main potential beneficiaries to this. The first UEC (Uranium Energy Corp) punched through major resistance at $1.46 in late June with a PowwerPlay buy (Green Square). Since then it has stabilised but has no immediate resistance. The Splits study or Time Area also supports a positive view as the higher timeframes have been stepping up for some time. It is also clear that if price went back below the key point at $1.46 then the trade would be wrong.
There is also an ETF that has a broader exposure and has been performing better. There is not enough history in the contract to create weekly and monthly levels, but the rally began with another PowwerPlay signal. Price has retreated a little, but whilst above $13.00 and the breakout day it also has a positive outlook, especially as there are no resistance lines above.
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