UX1! Uranium SpotUranium Spot is respecting the arc with multiple touches across the last decade.
At Present Uranium Spot has pushed through the supply demand Zone with is a very positive sign for the Uranium market bull case.
There are two scenarios I see playing out over the coming months in relation to Spot. The Uranium spot prices will either follow Scenario A marked on the chart and trades back into the Supply/Demand zone, Backtests the broadening wedge breakout point and continues its trajectory.
OR
The spot falls back into the Wedge and comes back to re-test the ARC boundaries before finding support and continuing its run.
Option A will see months of consolidation IMO after the run Uranium has just had and could cool off the market in the near term,
Option B is a much longer consolidation period and could take the best part of 2022 to resolve and see interest return to the U market.
This could all change if Utilities get the finger out and actually start their contracting cycles which could see an overnight jump in the spot.
holding and adding to U positions as this resolves. Its a marathon not a sprint.
