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December 20, 2016

#Uranium: Technical Analysis of Uranium Sector: Seeing Signs of Bullish Shift in Trend


Uranium Participation Corp: Signs of a Potential Shift in Trend

 

 

 

Cameco Corp.: Attempting Downtrend Breakout

 

 

 

NexGen Energy Ltd.: Consolidating Breakout

 

 

 

Denison Mines Corp.: Carving Out Basing Pattern  

 



Chart 1 – Uranium Participation Corp is starting to show signs of a potential shift in trend as price action breaks out from a yearlong downtrend. The breakout confirms the bullish divergence in momentum indicators and is backed by a breakout in RSI. It is important to note, however, that price remains below a falling 40-week moving average. We need to see the weekly moving averages start to flatten out and turn higher along with a break above the 40-wma in order to confirm the start of a major shift in trend.

 

Chart 2 – Cameco Corp. is positioning for a major breakout from a ten quarter downtrend as weekly RSI breaks out to 32 month highs on a new MACD buy signal. A weekly close above $10.75 will confirm the major trend reversal and position CCJ for a rally to $14.00.

 

Chart 3 - NexGen Energy Ltd is leading Uranium stocks as price action breaks out from a 6 month downtrend, 200-day moving average and reclaims the neckline of the April to September topping pattern. The breakout confirms the bullish divergence in momentum indicators and positions NXE for a rally to new highs. In the near-term, however, momentum indicators are overbought suggesting a period of consolidation is needed to workoff overbought pressure. We would look to add on weakness and a reset in momentum indicators.

 

Chart 4 – Denison Mines has broken out from a nearly 3 year downtrend as price action continues to carve out a 6 quarter double bottom with the neckline at $0.85.  Weekly momentum indicators continue to show signs of strength suggesting we should see an upside resolution to the current basing pattern. A breakout above $0.85 will confirm a bullish shift in trend that measures to a technical target of $1.30.


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