Uranium Market Outlook 2023: Bullish Bias

Our uranium market outlook 2023 has a bullish bias primarily because of the uranium spot chart. However, we cannot confirm a bullish outlook, not yet, as a 2023 forecast. That’s because there is important chart resistance to be cleared. Moreover, as explained in our most recent chartbook with high probability 2023 trends, the commodities space does not look great for 2023 (average to bearish for many commodities, bullish for only a handful of commodities, yes our silver bullish forecast and green battery metals are top on the list).

We start our uranium market outlook 2023 with a review of the uranium price chart on the longest timeframe: the monthly chart since 2008.

The uranium price chart has a bullish reversal with 3 key levels: 55, 90 and 103. No surprise, uranium spot has been hesitating and consolidating in 2022 in the 50 to 60 area.

We firmly believe that our uranium market outlook 2023 will turn bullish once uranium spot is able to clear 60.

Next, we’ll take a look at the uranium stock sector based on the URA ETF. We’ll start with the weekly uranium sector chart.

As seen, the weekly URA ETF chart has a series of lower highs. This, in and on itself, is bearish. However, it might be part of a bullish reversal if key support holds and once the falling resistance trend is cleared.

For now, we watch the 17 – 18 area. This is important support. If this market wants to work toward a bullish outcome in 2023 it must respect support and start clearing this falling 2022 trendline.

Let’s zoom in and look at the URA ETF daily chart.

Below is a close-up of the ongoing pattern that we labeled as ‘a series of lower highs’.

Moreover, and equally important for our uranium market outlook 2023, is the falling trendline that originated in April of 2022 right before we wrote Is The Uranium Price Uptrend Exhausted?

At this very point in time, the setup is more of a bearish triangle. However, if the falling trendline can be cleared, it can turn into a bullish reversal structure.

We look at the same URA ETF daily chart with a different charting tool. What we observe is that there is also a rising trendline that started in the Corona crash period and turned into support in November of 2020. This trendline is thoroughly being tested right now.

It is clear why we summarize our uranium market outlook 2023 as follows: “The uranium market has a bullish bias in 2023, however both the price of uranium and uranium stocks must prove their ability to clear resistance.”

The uranium market is at a pivot point right now. There is no way of knowing exactly if it will move higher or find resistance here even though the bias continues to be bullish. We would say: bullish bias until proven otherwise. The outcome will be wildly bullish or bearish, a pretty extreme outcome for our uranium market outlook 2023!

We take a quick look at the largest uranium miner: Cameco Corp.

The daily chart since the Corona crash is featured below.

The distribution pattern (in the form of a rounded reversal, the bearish version of it) is dominant right now. The uptrend that started exactly 2 years ago is not dominant any longer. The ongoing consolidation will need a breakout sooner or later, otherwise it will either continue consolidating (lower probability) or move to a lower area.

Interestingly, the uranium market is pretty consistent right now: the uranium spot price is hitting an important pivotal area (resistance until proven otherwise), the same goes for the uranium sector chart URA ETF and in a way also Cameco Corp (the largest uranium miner).

Must-Read 2023 Predictions – We recommend you read our 2023 predictions as they are very well researched:

A Silver Price Forecast For 2023

A Stock Market Crash In 2023?

Silver Stocks Outlook For 2023

Commodities Outlook 2023