Technical Look at Uranium & Crude Oil
from ChartWorks:: published by Institutional Advisors
Uranium stocks exhibited upside exhaustion readings in February. The historical action is a 17 to 19 week consolidation before the next sustained move on the upside is capable of starting. We are now at that point. Any correction within 3% of the 200-day moving averages on Cameco or Denison would provide excellent lower risk entry points. On the upside, if we can breakout through this week’s highs on expanding volume then the move is likely under way.
Crude Oil has surpassed the anticipated $55.70 resistance and is once again at the upper channel resistance line from the 1986 low. It also has a bearish divergence in the weekly RSI(14). The seasonal low in crude oil occurred prematurely during the week of May 27th. When this has happened before we have seen a high in the third or fourth week of June followed by a low near the end of July. The integrated oils and service stocks will likely be independent (moving with the overall market), however the oil sands could easily give back half of the recent gains.
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January 26th, 2020
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