We have covered the uranium mining space extensively in recent months. One of our forecasts was that March 2017 would mark a strong fight between bulls and bears in the uranium mining stock market segment. That forecast played out exactly as anticipated, and by far the most important decision point that investors are watching is $15 in URA, as explained in detail in uranium stocks: what happens at $15 has huge implications.
Readers are asking us how we could come to such accurate forecasts. The point in forecasting is this: only a minority of 10% of price points have any importance, the majority is noise. The key challenge is to identify those very specific price points, per market. The $15 in URA is one such example, another one was outlined in Uranium Mining Stocks Falling Sharply, Major Test Ongoing.
One of the uranium mining stocks which usually provides lots of leverage is Uranium Energy Corp, symbol NYSE:UEC.
The chart of UEC, similar to NYSE:URA, is right now at a decision point. As seen on the chart, each time the price comes close to one of the trend lines, investors should become very vigilant. UEC at $1.25 is one of those very important moments and prices: it is a bear market trend line and it is being tested right now.
The bearish aspect on this chart is that UEC was not able to go as high as $2.00 recently, which would have been a major breakout test.
Watch closely how deep the ongoing correction in UEC goes. If the $1.25 level holds in the coming weeks and months, it would be very bullish. If it does not hold, the next important price level is $0.90.
UEC will be in a major bull market once above $2.00 for at least 3 weeks in a row.
