URNM - LONG SWING Trade Long Duration
Updated
URNM is an ETF tracking uranium miners. Uranium based nuclear energy is now
hyped as a partial solution to the climate change crisis and the dependence on
fossil fuels. My thesis is that miners will enjoy a resurgence in demand for uranium
and with supply dependent on their work they will enjoy increased revenues
and margins above relatively fixed overhead and costs. The daily chart is
supportive of this idea. I see a symmetrical triangle here with both upside and
downside potential. Fundamentals diminish the downside potential substantially.
In the past month, price has moved above the POC line of the long-term volume profile. I have
drawn in pivot lines from which to plan targets in an upside move.
I see the upside as about 50% in the upcoming year based
on the chart but likely more if supply-demand imbalances have an impact. Taking
call options at various strikes out of the money near these upside targets is a
high consideration.
hyped as a partial solution to the climate change crisis and the dependence on
fossil fuels. My thesis is that miners will enjoy a resurgence in demand for uranium
and with supply dependent on their work they will enjoy increased revenues
and margins above relatively fixed overhead and costs. The daily chart is
supportive of this idea. I see a symmetrical triangle here with both upside and
downside potential. Fundamentals diminish the downside potential substantially.
In the past month, price has moved above the POC line of the long-term volume profile. I have
drawn in pivot lines from which to plan targets in an upside move.
I see the upside as about 50% in the upcoming year based
on the chart but likely more if supply-demand imbalances have an impact. Taking
call options at various strikes out of the money near these upside targets is a
high consideration.
Note
URNM on 30 minute time fram is testing the falling resistance trendline
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