Investing into Uranium-Backed Producers. Technical perspectives
Updated
Uranium ore trades is at records highs, as several hedge fund managers are expanding their allocations to uranium stocks, with a conviction that an increasing embrace of nuclear energy as part of a "green" future - along with geopolitically-rooted ambitions to reduce dependence on Russian oil and gas -- means the trend has a lot of room to run.
On Wednesday, November 1, French President Emmanuel Macron arrived in uranium-rich Kazakhstan on the first leg of a trip to Central Asia.
According to a study by the World Nuclear Association (WNA,) published in August this year, Kazakhstan possesses 12 percent of the world's uranium resources and in 2021 produced about 21,800 tons. In 2009 it became the world's leading uranium producer, with almost 28 percent of world production. In 2019, the country produced a staggering 43 percent of the world's uranium.
A dozen years after the disaster at Japan's Fukashima reactor put nuclear energy on worldwide probation -- and in, Germany, gave it a death sentence -- various factors are combining to bring it back into the acceptable realm of energy solutions.
UXC URANIUM U3O8 Futures Price, over the past 5 years.
First reason, the International Energy Agency says that, in order to meet "net zero" goals -- which describes a state where carbon emitted into the atmosphere matches the amount removed from it - global nuclear generation capacity must double from 2020 levels by 2050.
In addition to nuclear energy coming to the fore as a zero-carbon-emitting power source, it's also seen as a way for the western economies to reduce their need for Russian oil and gas. The fact that Russia currently accounts for about 8% of the world's uranium reserves underscores the need to develop new supply sources. There's also an increasing appetite for nuclear power in Asia and Africa.
Taken together, the uranium-friendly trends could power significant gains in the sector. Uranium equities could see dramatic upside -- 50%, 100%, possibly MultiX more.
The main graph represents technical perspectives for
URA - The Global X Uranium ETF that provides investors access to a broad range of companies involved in uranium mining and the production of nuclear components, including those in extraction, refining, exploration, or manufacturing of equipment for the uranium and nuclear industries.
The Global X Uranium ETF is 35.66% year-to-date return in this time, that is much stronger against top 4 American well-known indices i.e. S&P500 Index
SPX (11.95% YTD), Nasdaq-100 Index 
NDX (35.22% YTD), Russell 2000 Index 
RUT (-3.38% YTD) , and Dow Jones Industrial Average 
DJI (1.94% YTD).
Top 5 Holdings ofURA - The Global X Uranium ETF (as of November 1, 2023)
# Weight Name
1. 23.80%
CCO - CAMECO CORP
2. 11.25%
U.U - SPROTT PHYSICAL
3. 6.77%
KAP - NAC KAZATOMPROM-DR
4. 6.45%
NXE - NEXGEN ENERGY LTD
5. 5.41%
UEC - URANIUM ENERGY CORP
👉 The main graph says, there're alternative technical perspectives forURA - The Global X Uranium ETF in this time, where the major break out of multi year highs can open the door to further huge, MultiX upside price action under well-knoww Technical figure "Cup-and-Handle".
👉 Vice versa, if resistance is still strong, it can bring the graph to its main 5yrs SMA support.
On Wednesday, November 1, French President Emmanuel Macron arrived in uranium-rich Kazakhstan on the first leg of a trip to Central Asia.
According to a study by the World Nuclear Association (WNA,) published in August this year, Kazakhstan possesses 12 percent of the world's uranium resources and in 2021 produced about 21,800 tons. In 2009 it became the world's leading uranium producer, with almost 28 percent of world production. In 2019, the country produced a staggering 43 percent of the world's uranium.
A dozen years after the disaster at Japan's Fukashima reactor put nuclear energy on worldwide probation -- and in, Germany, gave it a death sentence -- various factors are combining to bring it back into the acceptable realm of energy solutions.
UXC URANIUM U3O8 Futures Price, over the past 5 years.
First reason, the International Energy Agency says that, in order to meet "net zero" goals -- which describes a state where carbon emitted into the atmosphere matches the amount removed from it - global nuclear generation capacity must double from 2020 levels by 2050.
In addition to nuclear energy coming to the fore as a zero-carbon-emitting power source, it's also seen as a way for the western economies to reduce their need for Russian oil and gas. The fact that Russia currently accounts for about 8% of the world's uranium reserves underscores the need to develop new supply sources. There's also an increasing appetite for nuclear power in Asia and Africa.
Taken together, the uranium-friendly trends could power significant gains in the sector. Uranium equities could see dramatic upside -- 50%, 100%, possibly MultiX more.
The main graph represents technical perspectives for
URA - The Global X Uranium ETF that provides investors access to a broad range of companies involved in uranium mining and the production of nuclear components, including those in extraction, refining, exploration, or manufacturing of equipment for the uranium and nuclear industries.The Global X Uranium ETF is 35.66% year-to-date return in this time, that is much stronger against top 4 American well-known indices i.e. S&P500 Index
SPX (11.95% YTD), Nasdaq-100 Index NDX (35.22% YTD), Russell 2000 Index RUT (-3.38% YTD) , and Dow Jones Industrial Average DJI (1.94% YTD).Top 5 Holdings of
URA - The Global X Uranium ETF (as of November 1, 2023)# Weight Name
1. 23.80%
CCO - CAMECO CORP2. 11.25%
U.U - SPROTT PHYSICAL3. 6.77%
KAP - NAC KAZATOMPROM-DR4. 6.45%
NXE - NEXGEN ENERGY LTD5. 5.41%
UEC - URANIUM ENERGY CORP👉 The main graph says, there're alternative technical perspectives for
URA - The Global X Uranium ETF in this time, where the major break out of multi year highs can open the door to further huge, MultiX upside price action under well-knoww Technical figure "Cup-and-Handle".👉 Vice versa, if resistance is still strong, it can bring the graph to its main 5yrs SMA support.
Trade active
Feb 3, 2024👉 Global X Uranium ETF just hit fresh 10-years high, following Uranium spot robust gain above $ 100 per Lb. in January, 2024.
👉 2024 YTD returns of Top 5
URA Holdings are detailed below, and much stronger against Top 4 U.S. indices.# 2024 YTD Return Name
1. +14.94%
CCO - CAMECO CORP2. +18.13%
U.U - SPROTT PHYSICAL3. +9.76%
KAP - NAC KAZATOMPROM-DR4. +14.69%
NXE - NEXGEN ENERGY LTD5. +26.99%
UEC - URANIUM ENERGY CORP
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