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.

2 comments:

  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.

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