Utilities vs. Uranium: Is the Nuclear Sector Gaining Momentum?Introduction:
Utilities AMEX:XLU have demonstrated strong performance over the past year, often signaling a "risk-off" market environment where investors seek safety. However, the rise of artificial intelligence (AI) and its impact on market dynamics may be challenging this traditional narrative. Despite the evolving landscape, caution is warranted against assuming that "this time is different." A new factor to watch is the growing influence of the nuclear sector, particularly uranium stocks AMEX:URA .
Analysis:
Risk-Off Sentiment vs. New Trends: While utilities' strong performance typically signals a defensive market stance, the increasing focus on nuclear energy is drawing investor interest toward uranium stocks. The shift reflects a potential change in how market participants view traditional safe havens.
URA-to-XLU Ratio: The upward trend in the URA-to-XLU ratio over recent years indicates a growing preference for uranium stocks over traditional utilities. Even after a significant selloff earlier this year, the ratio formed a higher low, signaling resilience and maintaining its long-term uptrend.
Momentum Shift: The key focus now is whether this ratio can make a new high. If the URA-to-XLU ratio breaks above its previous peak, it would suggest strengthening momentum in the nuclear sector, indicating that this trend could have staying power and possibly reflect a shift in market preferences.
Conclusion:
As the market balances between traditional risk-off sectors like utilities and emerging trends in nuclear energy, the URA-to-XLU ratio serves as a critical indicator of shifting investor sentiment. A new high in this ratio would suggest that the nuclear sector's momentum is strengthening, with uranium stocks potentially leading the way. Do you believe this trend will continue? Share your insights below!
Charts: (Include relevant charts showing the URA-to-XLU ratio, the higher low formation, and potential breakout targets)
Tags: #Utilities #Uranium #NuclearEnergy #XLU #URA #MarketTrends #TechnicalAnalysis
URA
The time will comeIt might become a 20$-Stock like Chapman said..
but until then.. you have to preserve your capital..
---STD-TEXT:
Stan Weinstein's method of trading stocks focuses on identifying a stock's position within its four-stage cycle: accumulation, uptrend, distribution, and downtrend. His strategy emphasizes buying stocks in the uptrend stage, where they break out of consolidation with high volume and continue above the 30-week moving average, signaling a strong upward momentum. Weinstein advises selling once the stock enters the downtrend stage, as it drops below the 30-week moving average, thus minimizing losses and preserving gains.
UROY an energy penny stock LONGUROY basically sells rights to mine uranium for a percentage of the production. It is a penny
stock in the nuclear subsector of energy which is undergoing a renaissance in this era of
fossil fuel addiction detoxification in the context of climate change remediation agendas.
The 240 minute chart shows a parabolic move in mid January followed by consolidation
and capitulation into a double top all at about the first anchored VWAP line above the mean
followed by a trend down into the present level near to the first lower VWAP line.
I will take a long trade here targeting the mean VWAP confluent with a standard Fibonacci
retractment which is the green line on the chart. $.05 is taken as a safe stop loss at the lows.
The target is 0.40 upside yielding a R:r of 8. I have positions in URA and UEC at this time.
The entire uranium subsector is cycling from warm to hot again.
Copper & Oil : Are commodities about to surge? Copper is showing great pattern consolidation.
it appears to be putting in a daily bull flag pattern that looks poised to breakout.
If copper follows some of the other recent price action in the commodity space it makes it even more likely to surge.,
You're seeing #gold #uranium #oil and other all performing well.
Will this dampen and slow down the dis inflation expectations? Perhaps.
I am long SCCO with members and have already secured some profits today with members.
I do think there is more strength to come in copper.
Rising supply could act as a headwind for uranium pricesThe price of uranium, known as yellow cake, has more than doubled in the past year amid a significant imbalance between supply and demand in the global market, sending uranium-related assets soaring to the sky. In addition, the return of Japanese appetite for carbon-free energy and the restart of two nuclear reactors last year, along with plans to restore more units in 2024, also contributed to rising prices. Then, more recently, the announcement of the U.S. ban on Russian imports of uranium and the approval of the GX Decarbonization Power Supply Bill in Japan, aimed at creating a carbon-free energy supply, have had the same effect, helping uranium to regain strength after a brief selloff in February and March 2024.
Illustration 1.01
Uranium-related assets, including Global X Uranium (URA), Sprott Physical Uranium Trust (SRUUF), Sprott Uranium Miners ETF (URNM), and Uranium Energy Corporation (UEC), all recorded huge gains in the past year or so.
Since the start of 2024, uranium has gained approximately 4.7%. Yet, for the year, its performance has been flat, which begs the question of whether the rally is not overdone at this point when the supply is coming online around the world, raising chances of the market moving toward balance and potentially leading to stabilization or reversal in prices. According to the quarterly Domestic Uranium Production Report published by the U.S. Energy Information Administration (EIA), uranium production in the United States for the first quarter of 2024 already surpassed the total output last year. Moreover, data from 2021 and 2022 suggest countries like Australia and Canada are also trying to ramp up their production in response to rising prices.
Illustration 1.02
The image above illustrates the weekly graph of Global X Uranium ETF (URA) and a major resistance at $31.60.
Regarding Global X Uranium ETF (URA), it recorded remarkable 353% gains since its lows in 2020, coupled with a nearly 15% increase in the current year alone. However, despite these impressive gains, the ETF has encountered a significant hurdle at the $31.60 mark, signaling a potential barrier to further upside momentum. Besides that, there is a growing perception that events traditionally viewed as catalysts for price appreciation are losing their potency over time, indicating a potential shift in market dynamics.
Technical conditions
Daily time frame = Bullish (losing momentum)
Weekly time frame = Bullish
Monthly time frame = Bullish
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.
Uranium Go Boom!Uranium looks ready to explode higher.
This commodity had a daily chart breakout today and no one is talking about it.
Silently triggering a bullish inverse head and shoulders, this should yield more upside.
I'm looking for this breakout move to be confirmed in the coming days. If it confirms a breakout this will be a likely trade that we can buy the dip on.
Uranium Slingshot Cheetah Pattern Incoming!!I have identified 3 different types of similar variations in URNM and URA ETFS which show us that we could be in a cusp of a huge explosive move to the upside.
These shakeout patterns are almost identical to each other with the same behavioural patterns before a big move to the upside. 2 humps which are almost like a H&S pattern followed by a huge flush down to break the upwards trend then bouncing off the 200 DMA with a complete reversal to the upside.
All of this is happening at the same time we are bottoming on the URNM/UX1! ratio with huge positive divergence on momentum indicators
Denison Mines breaking outDenison Mines is breaking out of its 12 years range on massive volume.
The huge demand for clean energy, particularly with AI's exploding growth and needs, means a lot of positive news coming for the nuclear industry.
Coupled with the devaluation of developped markets currencies, this could propulse DNN much higher.
Next resistance is the $4 area, then there is $8.50 before the all time high around $14.
Uranium could explode back half of 2024CCJ leader of uranium.
CCJ has been developing a text book Livermore Accumulation Cylinder. In the last uranium bull market CCJ developed this accumulation cylinder over 4 years from 2000-2004 and now its doing the same accumulation cylinder from 2020-2024.
We are in the final flush out stage 7 before an explosive wave 8 up.
The chart on the right shows CCJ/SPX. You can see we are in the final bearish flush-out stage before CCJ starts outperforming SPX massively. The ratio also signals CCJ is a long way from outperforming SPX so the real bull has not even started yet.
We can confirm this analysis by the miners underperforming the metal - URA/U.UN. Once the miners start outperforming the metal, the real bull takes place as we are on the APEX of that happening soon.
The Junior miners will be the stars of the show when the big capital rotates into the smaller developers and explorers.
Canalaska $CVV up 50% on new findNew uranium find has pushed Canalaska up 50% in a day. Wow!
Downward trend channel formed in April 2021 and almost 3 years later it has broken out, pulled back and now rocketed with volume.
0.85 therefore seems achievable and 1.54 all time high could also be possible.
As ever, this is not a solicitation to trade. Do your own research and you decide all aspects of your own trading.
UEC an uranium miner rerverses and warms up LONGUEC in the past several days has put in a double and bottom appears to be gaining bullish
momentum based on the trend angle from today. The volatility indicator triggered buying
price pressure five days ago as shown on the indicator and encirled. the volatility of yesterday
and today may be shorts covering to close synergized with new buyers. The uranium sector
is heating up at this time. Many of the stocks in this sector are over the counter. The ETFs
are URA and URNM. I will add to my long position in UEC now.
Uranium ETF Update - The perfect trade playing out Uranium ETF - $SRUFF
✅ 45% increase since entry at 200 day bounce
✅ Pennant Breakout confirmed trend
🎯 Target remains 0.618 Fib Ext at $45.00
❌ Stop Raised to $26.67 guaranteeing 27% profit
(Stop placed here as it is the most recent higher
low and should remain intact for short term trend
to remains valid)
Hope this simplifies the approach and structure of the trade.
Thanks
PUKA
UROY Uranium finance lease mining play LONGUROY does royalties foe uranium mining ore to refined et cetera. On the 60 minute chart,
it has been on fire this week picking up 30% in market cap showing explosive volumes
at 5X and sustained. The past two days have been rest and recuperation in consolidation.
The zero-lag MACD suggests there is more upside in the near term with a line cross under a
histogram rising from zero. The advanced RSI indicator shows a relative strength pullback from
80ish to about 65 and surprisingly the linear regression lines suggest an oversold state at
present. I will take a long position here which may be risky at nearly 2 standard deviations
above a rising mean VWAP and extended from the POC line of the volume profile but the
supertrend indicator is showing a stepped rise and that is good enough for me. I have a
new position in UEC a penny energy stock in the uranium subsector.
UROY Swing Trade Recap Volume Profile Analysis LONGUROY on a 15-minute chart with the volume profile and the EMA cloud as the indicators
demonstrates a one-week-long swing trade. Both stock shares and inexpensive call contracts
were traded. The stock trade profit was 30% over five trading days ( MLK Holiday ignored).
Options dramatically more profit for the expiration of 1/19th. The analysis, setup and
trade management occupied about 5 minutes per day as assisted by typical alerts and
notifications on the indicators as per TV.
The options contracts were closed as they were expiring later that Friday afternoon. The stock
position could have continued over a closed market weekend but I opted to close the
the entire position of stock simultaneously with the options.
This idea demonstrates the utility of the volume profile in this case applied to a penny stock
the hot uranium subsector within the energy sector at large. See also my other ideas on UROY
and also UEC.
The profits here will be used to take another long call option for UROY striking $ 5.00
for January 2025 sith some change left over for the next re-entry.
$URA double top, target sub 10?Looking at the chart, we've just formed a high timeframe double top. Unless price can break resistance and confirm it as support, price is heading down.
Based on the structure of the chart, if the midline gets broken at $18, the target of the move should be sub $10. Hitting the lower supports around $6-7.
If we get down there, that should setup a great multi-decade buy.
Let's see how it plays out.
Paladin Energy Breakout
Paladin Energy Ltd - OTC:PALAF - $0.65c ps
- Break out and re- test of parallel channel looks like
a repeat of a prior move (Red Circles).
The beauty of all of the four Uranium stocks ive covered is that the ETF has broken out into an upward trend and now some large and smaller Uranium miners are also breaking out with similar patterns of pennant breakouts and ascending triangle breakouts. We do have overbought RSI so its critical to have tight stop losses set under the base of all moves.
Interestingly Light Crude Oil looks to be bouncing at the moment too, as is Gold and Silver.
Commodities really are starting to glow and no wonder with currency risk on everyone's minds.
PUKA
Uranium Mining OutlookURA in a 3rd wave and could possibly have topped here at the 28, but it also could be setting up higher for a 5th wave finish 32-36 area.
When I first looked at it, I saw the possibility of a great buying opportunity in the $14-16 area if things break down.
Right now I think we need to hold the $24-22.5 area to keep this bullish move upward. Otherwise the 14-16 becomes a greater likelihood and then will have to start seeing if the projections of the move line up to that target of $14-16.
Not financial advice