We recently wrote about a bullish setup in the uranium mining space. We also recommended to closely watch what is happening in the uranium stock mining space in this article 4 Stock Market Sectors Which Could Outperform In The First Months Of 2017.
We notice today an attempt of the Uranium ETF (URA) to break out. We are quite convinced this breakout will be for real, given the solid chart setup.
One of our favorite junior uranium mining stocks, which provides a great leverage in a bullish uranium market, is Fission Uranium. It is a small cap stock with a market cap of $225M. Investing in such stocks carries a very high risk, so positions should be small.
The chart setup suggests that sellers have left the arena. Look at the consolidation range with a double bottom spread over 11 months. That is a strong sign.
Fission uranium looks ripe to move higher from today’s $0.7 level to the $0.9 level where it will meet secular resistance. However, if the breakout in URA will be for real, representing the uranium space, we believe Fission will easily break through its falling trendline.
Watch closely what happens in URA and also at $0.9 on Fission Uranium stock chart. The best case outcome will be a rise to $1.2 and even $1.7 (its all-time highs).