Uranium De-Correlating from the Dollar Creates Opportunity for Uranium stocks

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.

image of uranium and us dollar De-correlation trading chart


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.


image of Uranium trading chart

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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.


image of uranium energy corp trading chart

Uranium ETF

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.


image of uranium etf trading chart

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Please note any advice is general advice for all our clients and has been prepared without taking into account your personal objectives, financial situation or needs. If you do wish to consider acting on our information please contact a licensed financial advisor to discuss the appropriateness of this recommendation for your own personal financial circumstances. Please obtain any relevant product disclosure documents before deciding to invest. Trading derivatives and CFDs can lead to losses greater than your deposit. Never risk more than 1% of your trading funds on any trade.

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