Could the Uranium Charts Be Turning?

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Most senior and mid-tier uranium stocks have spent several months bottoming out and are now up 15-20% off their lows. Several other technical indicators look like they are about to turn positive (though haven’t yet – but this is where the early gains are) – short and medium term averages are about to cross up, momentum and on balance volume are about to go positive.

There are many ways to make money in the stock market. The easiest, most important, and yet hardest to do, is to have patience. You buy unloved stocks that are not in the limelight with good fundamentals, and wait for the market to recognize value.

I’ve been doing this as an investor, for awhile as a stockbroker, now as a newsletter writer – for over 20 years, and it doesn’t get any easier. It is emotionally tough to buy a stock when it looks like nobody cares about it. But my history is very clear – that’s how we make capital gains.

The junior uraniums are like that now. After two years of being the hot sector, their share prices have cooled a lot in the last six months. They are unloved, mostly because the uranium spot price has gone up and down – mostly down. But the long term price has stayed steady at $95/lb.

It’s true. So the economics on deposits should be excellent. But psychology on the companies’ stocks that hold these deposits is negative. That’s our opportunity.

We may have to be patient – or maybe not - because looking at the stock charts of these uranium companies, I am very intrigued. Most senior and mid-tier uranium stocks have spent several months bottoming out and are now up 15-20% off their lows. Several other technical indicators look like they are about to turn positive (though haven’t yet – but this is where the early gains are) – short and medium term averages are about to cross up, momentum and on balance volume are about to go positive.

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