On 5/9/18 I wrote this article regarding ticker URA – an ETF that tracks the price of uranium. For the record that article was more about the particular type of price action (almost 3 years of sideways range bound price action) than URA itself.
I mentioned in that article that what attracted my attention was the form of the price action and the observed tendency for that pattern to be followed ultimately by an upside breakout and often a significant price move.
I also mentioned that I knew nothing about the fundamentals regarding uranium the actual commodity. Well for the record, now I do thanks to the article linked below. The author of that article (Caleb Jensema) also seems to expect an ultimate advance in price based on the fundamentals of supply and demand that he spells out in his article.
Please see URA – The Nuclear Option for a discussion of the fundamentals of uranium.
Summary
So in a nutshell, one author likes URA based solely on technical factors and one author likes URA based solely on technical factors.
Does that mean URA is a “Buy” and that a huge move is sure to follow? Not at all.
But it might be one to keep an eye on.
Jay Kaeppel
Disclaimer: The data presented herein were obtained from various third-party sources. While I believe the data to be reliable, no representation is made as to, and no responsibility, warranty or liability is accepted for the accuracy or completeness of such information. The information, opinions and ideas expressed herein are for informational and educational purposes only and do not constitute and should not be construed as investment advice, an advertisement or offering of investment advisory services, or an offer to sell or a solicitation to buy any security.
