Uranium miners are close to become very bullish. In fact, so far, it seems that uranium miners have followed a textbook case of a mega breakout.
If we look back, over the last 9 months, we see a secular breakout pattern. As annotated on the chart:
- “1” is the breakout point, where the long term bear market (which started in 2011) got broken to the upside
- a strong rally followed
- “2” was the test of the breakout level and the falling channel
- “3” is the ultimate confirmation of the breakout pattern
Spotting “1” is not the most challenging part. We spotted a Very Bullish Sign In Uranium Miners last November. We also spotted the breakout: It’s Official: Uranium Miners Are Breaking Out.
Acting on what happens with the backtest is the biggest challenge. In all honesty, even we got concerned at point 2 when we wrote Uranium Mining Stocks Break Down. That was really close to the depths of the correction. Our expectation was that 15 was the most crucial price level, but it appeared that $12.50 was the ultimate back test.
Since April / May of this year uranium miners have basically gone nowhere. And that is what’s so interesting right now. A sideways price pattern distracts the attention of both bulls and bears. That is the basis for a new trend.
Note that the uranium spot price is stable for a while now, it could be bottoming at these level (20 USD). If this is a long term bottom, it would certainly be extremely supportive for uranium miners.
We estimate that chances are high that uranium miners will become very bullish very soon, though we must see a break above 15 points in URA. If that happens, our top playS are uranium junior miners UEC and Fission Uranium, this is why Small Cap Fission Uranium Rises On Promising Drilling Results and Watch Uranium Energy Corp (UEC) As Sector Leader Among Uranium Stocks.
Our NEW report: The Most Practical Investment Guide For The Mega Bull Market In Cryptocurrencies, Tokens, ICOs and Blockchain Stocks. It includes 20 practical and actionable investment tips. Get access now >>
Follow official Ethereum prices in real-time. Read daily Ethereum price news on www.ethereumprice.today >>