UUUU - A Levered Play on the Uranium Market

2019年11月30日

The bear market of spot Uranium has dragged down the price of the subsequent uranium miner stocks, including UUUU. This stock in particular experienced a very steep mark down period during the time of the Fukushima reactor meltdown. This event left a bad taste in the mouth and as a result, many stepped away from using nuclear energy to the same extent to meet energy demand.
In 2016, we saw a 'base' establish for the stock right around $1.35. As the market structure stands, this is the bottom end of our accumulation range. The upper end of this range is at about $2.35.
Mid-2018, we saw a market expansion take place as price tested the upper end of our range, and surpass it. When price exceeded $2.35, a lot of attention and capital started to flow into the Uranium market, the market makers unloaded shares for about a year, then sent price back down into our accumulation range.
Today we are seeing a lot of choppiness, as bulls and bears battle it out.
Overall, I see a lot of room for growth in this sector, especially during a time of clean energy promotion. I believe nuclear energy will be the answer to the demand for clean energy.
I have a price target of $5.28 by 2022. An entry at $1.35 would give an incredible R/R of 3.94/0.0064. An upside of 400% and a downside of about 10% if market structure breaks.
Beware of the volatility, and search for a safe entry.

2019年12月15日

ノート

Break down fake out, quick run up, then break down of supporting trendline, all in a few weeks.
Likely heading back to all time lows @ $1.36