There’s a lot of potential for escalating military conflict in the world. Let’s talk about Uranium.
The largest Uranium producer in North America, Cameco (CCJ) is potentially forming a major multi-year bottom. After the sharp break below the 2008 lows last fall, we’ve strongly recovered and price has held above it on the recent correction.
We’re far from confirming it, but this could be a classic bullish head and shoulders pattern. Keep an eye on price relative to the 200 week moving average if price does make new highs for the year.
Uranium ETF URA has traded within a falling wedge over the last couple of months. We’ve seen a bullish momentum divergence form. 16.40 is the obvious first target area. It wouldn’t be surprising to see URA open near there.
So there we have it. Two large pieces of technical evidence suggest that we may be seeing a key short term AND longer term low in Uranium producers. There is money to be made here, likely even after gaps higher tomorrow.
Trade ’em well