Uranium has started to break above it’s downtrend line that has been in place since 2010. The overall bear market in uranium goes all the way back to 2007.
Source: www.indexmundi.com
Many uranium stocks have hit new lows recently even with uranium bouncing. I find this divergence intriguing and could spell opportunity if uranium prices continue to remain firm. Uranium stocks most likely got sold off with the rest of the small cap stocks but the price of uranium will drive their fundamentals longer term.
If you look at DNN for instance it fell back into a Stage 1 base recently after a failed Stage 2 breakout. This stock has been basing for years now and if it sets up again could be ready for an explosive bull market at some point in the future.
