Saturday, October 23, 2010

Uranium stocks are over heating?

The uranium stocks have just completed a spectacular run, and it sure looks like they are going to retrace some of their gains.  URRE is sporting a bear flag and declining RSI.  I am expecting this flag to break and look for a retrace to the 38.2 line.  I own this stock and would add to at that price.  A break of the 50 line would cause me to rethink my position.  If I am wrong, I suggest adding onto when the high is taken out. 

DNN looks like the strong stock in the sector, and I would make additional purchases above $2.25.  I own this one, as well, and it is showing no signs of any weakness. 

UEC gapped down this week but held its 38.2 line.  A break here can take it down to the 61.8  line and the intersection of the rising trendline., and CCJ is consolidating.


  1. Over the last year, Strathmore (STM.V)n has been slightly hotter than Dennison. Over the last 6 months, UUU.TO (Uranium One) has outperformed both Dennison and Strathmore. Dennison has had the strongest performance YTD. I own all three. A little consolidation in uranium stocks before continuing higher woukd be healthy.

    UUU.TO has a $1.06 divvy coming up before the end of the year on completion of their deal with ARMZ.