If you’re a regular reader of our technical work, you’ll know that when an idea is working for us, we keep repeating it until our colleagues get tired of hearing about it – and then we repeat it some more. Our pro-commodity bias started when gold broke out above $1350 in the summer of 2019 and it gained traction, and strength, when the Bloomberg Commodity Spot Index engineered a breakout of its own in the autumn of 2020. We’ve also been keen on equity related subsets to the physical commodity theme that includes agribusiness, base metals, gold / silver, fertilizers, iron ore / mining, shipping / tankers, and uranium. We maintain our own indexes for several of these subsets and the version for uranium follows below.
We’ve hit the uranium idea several times (see above) in this forum, most recently on March 1. But the end of day action today was noteworthy as our index finished up 7% as it surged late on news that the US was weighing sanctions on the Russian nuclear power supplier Rosatom. To say that such a move would impact the nuclear power industry and uranium mining is as big an understatement as saying that Kyrie Irving is a basketball magician (truly, Kyrie is a wizard).
There are eight stocks in our index (we had nine with Kazatomprom included but we removed it since…well, you know why) and all have strong Technical Scores. Monthly charts for CCJ, DNN, NXE, UEC, URG, UROY and UUUU are especially constructive while Paladin is coming on. Its ADR is PALAF. Continue further below to see the charts.
The pink circles in the chart for our Index call attention to the consistent trend of higher lows. We also believe the set-up evokes a BASE building pattern, though it is neither neat nor symmetrical.
Cameco – CCJ – Monthly w/ 12-Month MA and Monthly MACD
NexGen Energy – NXE – Monthly w/ 12-Month MA and Monthly MACD
Energy Fuels – UUUU – Monthly w/ 12-Month MA and Monthly MACD
Denison Mines – DNN – Monthly w/ 12-Month MA and Monthly MACD
Uranium Energy – UEC – Monthly w/ 12-Month MA and Monthly MACD
Uranium Royalty – UROY – Monthly w/ 12-Month MA and Monthly MACD
Ur-Energy – URG – Monthly w/ 12-Month MA and Monthly MACD
