Uranium Updatefrom ChartWorks:: published by Institutional Advisors
Sparked by Cameco’s problems at Cigar Lake on October 22nd, the junior uranium stocks have exploded in the past week. Many have achieved the initial technical targets established on October 18th. These were assumed to be objectives that could be met ‘in the next few months’ as uranium stocks made their normal seasonal appreciation relative to the oil patch into the end of the year.
Event driven moves such as this cause the beneficiaries to get ahead of themselves, becoming overextended with RSI(14) readings into the 80’s. This is now upon us. The sector has split itself into two groups; those trading at new highs and those only making a retracement rally (68% to 78%) of the decline from the highs earlier this year. Examples of each follow.
Look for the stocks trading at new highs to produce a CCI(8) reading below –100 while giving back up to 30% to 40% of the rally, testing their breakouts and 20-day exponential moving averages.
The following stocks are still shy of their highs. I would look for the corrections to be in the order of 50% to 68% of the October rally and produce RSI(14) readings below 40.
CHARTWORKS WEBSITE:: www.institutionaladvisors.com
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.
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April 9th, 2020
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