A couple of months ago we stated that the Uranium Mining Market Continues To Be Mildly Bullish, and suggested this specific sector suggested that smart investors were in accumulation mode. More specifically, we suggested to Watch Uranium Energy Corp (UEC) As Sector Leader Among Uranium Stocks.
If a market is preparing a breakout, which, visibly, was and still continues to occur in the uranium mining market, large investors build up some slices gradually over time. That’s what happens during a consolidation period. The vast majority of investors do not observe this, because of two reasons. First, financial mainstream media does not provide coverage on those markets that are consolidating, because they don’t have anything spectacular to say so they cannot sell eyeballs. Second, smart investors are smart for a reason, they know very well how to hide their actions and take positions long before prices go up.
At InvestingHaven we are providing coverage on the uranium mining market for a while now, and have tipped particularly UEC (UEC) as our top favorite in this segment.
Morever, as this market is slowly but surely preparing a mega breakout, we said to believe UEC outperform its peers: Uranium Energy Corp (UEC) Stock Price Looks Explosive Going Into 2018
What makes it so hard for the vast majority of investors to make profits is not only to get in early (as that requires good research to identify bull markets in their early stages), but, more so, being patient. Case in point: last year, we observed that Uranium Stock UEC Was Preparing A Bullish Breakout, but eventually it became a false breakout. Most investors become frustrated, and sell with losses. What tends to happen in such cases is that they see the stock go up strongly after a while, and go long again, only to find themselves chase prices higher.
InvestingHaven recommends taking positions gradually over time in markets like uranium mining stocks, and be patient.
Uranium Stock UEC Preparing Itself for a Major Breakout
UEC specifically is now a forgotten stock in a forgotten sector. However, as its long term chart shows, this stock may be ripe for a breakout which, if it materializes, will be a mega breakout. We expect this stock to become a multi-bagger in a matter of weeks or months after its breakout.
Which price level to watch? The current one. The $1.69 level is the breakout point. A false breakout can occur, but, again, patience is required in such a scenario. Otherwise, UEC will be ‘off to the races’.
The odds favor a bullish breakout anytime soon because of the gorgeous setup of UEC. Watch the shaded red area on the chart, this is strong accumulation on every dip, a pattern of higher lows built up over 28 months. Never before has this stock been trading for so long so close to its resistance line.
A major breakout in UEC is in the making for a long time, patient investors will be hugely rewarded.