$SPROTT Physical Uranium in 2 year coiling triangleAfter a surge of prices in
SRUUF and spot uranium in 2023 - nearly doubling from ,from ~$12 to ~$24 - SRUUF
spent the entirety of 2204 retracing back to around $16-17... forming a triangle pattern that is gettin increasingly tight. At some point in 1Q or 1H this year believe the commodity will start a bullrun that could last years driven by increasing demand
At Goldman
CCJ conf: "The industry is seeing demand the likes have never been seen before"... Pariticularly, in the last half oft 2024, the market has seemed increasingly interested in developing nuclear power solutions to power all the new AI data centers in a green way. New tech is faciliting this. Even if many of the new reactors don't come online for years, firms will be stockpiling have to start stockpiling
Positive technical developments on the montly chart: that suggest
SRUUF
will break to the upside out of this triangle in coming months:
-Recent Positive Divergences in the BBP (bull bear power) and WIliam %R
-Oversold RSI suggest retrace is long in the tooth and the CCI is at the -100 level where its bounces every time since 2022
On top of that we are sitting near the anchored VWAP since inception for the first time in a year and that has been a supportive chart point area ever since. The volume profile suggest that should occur mostly between the range of 16.9 and 20 dollars.
If vwap fails and it breaks out of the triangle to the downside, possibility of a quick move down to the 13 area
