Breaking News

It’s Official: Uranium Mining Stocks Break Down

By Taki TsaklanosStock MarketsApr 30, 2017 01:15AM ET
It’s Official: Uranium Mining Stocks Break Down
By Taki Tsaklanos   |  Apr 30, 2017 01:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Uranium mining stocks had an extremely bad performance this week. Already back in February, InvestingHaven’s research team identified why 15 points in uranium mining stocks (URA) would have huge implications.

This week, Global X Uranium (NYSE:URA), representing uranium mining stocks, lost ten percent of its value. That is meaningful, and, more importantly, very impactful, as that sharp drop occurred right at that important level of 15 points.

That is a sign of weakness in the uranium mining space. Visibly, the strong rally between December and March got ahead of itself, and was too strong after such a long bear market.

Cameco Corp (NYSE:CCJ), a uranium miner with a market cap of $4B and one of the leaders in URA ETF, lost more than 8 percent today.

What’s next for uranium mining stocks?

The next stop for URA ETF is clearly 12 points, which is ten percent below last week’s closing price. It is almost given that 12 points will be reached pretty soon even.

What happens at 12 points will be so important for uranium mining stocks. That is because that level coincides with the bear market channel that started in 2011. If, and that is a big IF, URA manages to stay above that level, it would be a very bullish signal, as it would mean that previous resistance (previous breakout point, see purple circle) would become support. That is what investors call a textbook case of a breakout stock. Moreover, it would set a higher low compared to the lows of 2016.

However, if 12 points gives away, the bear market would continue, and 10.50 points would be the ultimate test.

URA ETF April 2012-2017 Daily
URA ETF April 2012-2017 Daily

Original post

It’s Official: Uranium Mining Stocks Break Down
It’s Official: Uranium Mining Stocks Break Down

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email