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May 6th, 2009
Technical observations of


The uranium sector has come to life once again. After two years of being out of favor, price have broken out of well established down trends and money flow is expanding on the upside. A number of stocks in the sector bottomed in October (i.e. Cameco, First Uranium, Paladin,UR-Energy, Uranium One, Uranium Participation Corp) and have been steadily stepping their way higher. These are now generating overbought readings on the weekly charts.

In the past two weeks pretty much every stock in the sector has popped with the recently illiquid ones having the largest percentage moves. Such signs of excessive exuberance are indicative of danger just around the corner. On a daily basis, most of the late bloomers now have overbought Relative Strength and Stochastic readings.

Based upon the development the 2000-2003 base and the rising trend of 2004-2007 we would expect the current strength to be followed by a downside correction that straddles the 50-day moving averages before the next advance.

Levels to watch for:
CCO.TO under $24 DML.TO under $1.60 FIU.TO under $5.70 MGA.TO under $1.55
NLR under $19 PDN.TO under $3.20 SGR $20 U.TO under $6.75
UEX.TO under $1.10 URE.TO under $0.85 URZ $0.90 UUU.TO under $2.70

May 6th, 2009

The opinions in this report are solely those of the author. The information herein was obtained from various sources; however we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or options or futures contracts. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities such as ADRs, whose values are influenced by the currency of the underlying security, effectively assume currency risk. Moreover, from time to time, members of the Institutional Advisors team may be long or short positions discussed in our publications.

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