Uranium Stocks Nearing Attractive Levels – Commodity Piece
Everything You Need To Make Money In Uranium
Uranium is THE one commodity that we believe investors MUST have in their portfolio for this decade. Not only from a diversification standpoint, but also from a potential Commodity bull run + extremely strong fundamental standpoint. Our previous Uranium article (found here) called for a pullback. That’s exactly what happened allowing our members to now start participating in the uranium bull run.
Typically, when the weekly MACD for spot uranium ($U.UN) goes over 0.9 and has a bearish cross, uranium tends to correct around 30%, which would put it around the $24 region. Deeper corrections tend to reach closer to 40ish percent, which would put spot uranium in to the support zone between $18 to $19.75.
Please note that we’re using the spot Canadian ticker ($U.UN) due to the availability of more price history, but for US investors looking to invest in spot uranium the ticker $SRUUF can be used.
In the short-term, however, there’s a bullish RSI divergence with a bullish MACD cross on the daily time frame, so uranium is likely to see upside from here. But the correction might not be completely over yet (as seen through our Cycles Forecast later in the article). However, with a name as volatile as uranium, it makes sense to dollar-cost average during underlying bullish build ups because a front-running scenario is always on the table.
Spot Uranium VS S&P 500
The current run up in uranium is a BIG deal and the chart below shows why. Spot uranium relative to the S&P 500 just broke out from a multi-year rounding bottom pattern, and has now come back to re-test the breakout region. If the green zone holds, then such a pattern would result in 115% to 147% outperformance for spot uranium relative to the S&P 500 (based on the measurement for a rounding bottom technical target).
Big 3 Uranium ETFs
Sprott Uranium Miners ($URNM) broke below its uptrend line and has now hit the mid-point of the upper range resistance and lower range support. This is a good area to add to the name. However, don’t go all in. A visit to the lower range support region is very much possible, and would present a good accumulation opportunity.
Uranium Junior Miners ($URNJ), one of our favorite picks for a uranium ETF, recently hit the support zone between $22.50 and $23.25 that we had been eyeing in the past uranium articles. Given that it is still very close to that level + near the uptrend line, it’s not late at all to add to this name. A break above $25.48 would be significant for the bulls.
Global Uranium Miners ($URA) is in a similar position to Sprott Uranium Miners ($URNM). It broke below its uptrend line and has now hit the mid-point of the upper range resistance and lower range support. This is a good area to add to the name. However, a visit to the lower range support region is not out of the cards, and would present a good accumulation chance.
While Uranium ETFs are a good way to get slightly higher beta exposure to uranium, it’s not enough for a uranium investor looking to maximize gains in a uranium bull run. That’s exactly why we have the next section that covers 4 MUST HAVE uranium stock names. We also go over the spot uranium Cycles Forecast to help our paid members gain a timing edge and we look at a fundamental factor that separates uranium from most other commodities.
Here’s to the BIG Money-Making opportunities in Uranium: