Uranium miners were rising recently. The uranium mining ETF URA went from 12.50 to 14.50 points since mid-June. Right now it is consolidating its gains.
We had identified UEC as an outperforming stock in the sector given our belief that it would be the outperformer on rising uranium spot prices. We continue to believe so, though it could some time until this materializes. Let’s not forget uranium miners have been in an agsressive bear market since 2011.
Next to UEC we also tipped Fission Uranium (FCU.TO), a small cap with a great outlook, as a favorite small cap uranium miner. This small cap uranium stock published promising drilling results (here and here) in the last two weeks.
The stock price of FCU.TO went up from $0.52 mid-July to $0.78 today. With that, its chart shows a nice bounce from long term support (which was critical to hold) right to resistance going back 3 years!
Next to UEC we expect FCU.TO to outperform as soon as uranium miners get momentum again. That could be in the very near term of medium term, we cannot know exactly, as the bear market has been rude it can take some time for these stocks to start a new bull market. No matter how long exactly it will take until the uranium mining market turns up again you prefer to have positions sooner than later as these rallies tend to be very aggressive.
