Uranium Spot Price: The Stealth Uranium Bull Market

Some people drink deeply from the fountain of knowledge. Others just gargle.
Grant M. Bright British-born American Engineer

Uranium Spot Price: The Stealth Uranium Bull Market

The above chart quite clearly illustrates that Uranium is in a long-term super bullish phase. It continues to put in new 52 week highs almost on a weekly basis and is now trading at a 20 year high. One would think that uranium has already moved up too much and that there cannot possibly be much more upside left in this bull. Take a look at the chart below, and the outlook changes considerably, and if one adds in the supply factor, the picture gets even more bullish. Note Uranium has quite a way to go before it catches up to its old high and with all the new nuclear power plants being supplied is going to be a massive problem. Current demand exceeds mined supplies by almost 50%; the rest of the demand is being met with above the ground supplies. These supplies are eventually going to run out.

A quick look at this chart illustrates that uranium still has a long way to go before it equals the highs it put back in the 1970s. The true bullish phase will begin when it surpasses these highs. Otherwise one could technically argue that this is nothing but a dead cat’s bounce in a long-term secular bear market. We believe that there is a tremendous amount of upside potential left in this market. One of the main reasons is that it’s not yet receiving much public coverage. Now and then someone mentions it, but it’s still not the hot story in town.

Contrarians

Will play this market differently as soon as uranium hits the front pages of major magazines and newspapers they will bailout. At TI where we focus heavily on mass psychology, this will not the ideal time to bail out. In fact, it’s at this stage that the mass feeding frenzy will begin and the ride up will be very volatile should generate additional gains of as much as 500%. We will ride it up until our psychological indicators state that the bullishness has reached an unsustainable level and then we will bailout.

As we have repeatedly stated in the past every potentially great sector is loaded with exciting plays, one has to know when to position oneself in these plays. Today’s leaders will not be tomorrow’s leaders, and some stocks will, for the most part, remain losers. An example is MYNG in the Gold Sector; from a high of 30 cents in Oct 2003 it’s now trading at 1 cent, and that’s after gold went on to put in series of new 52 week highs.

Uranium Spot Price & Bull Market Update Aug 2018

CCJ did drop to and below 8.50 which proved to be a huge opportunity for those who acted on our suggestions. So what’s the outlook now for uranium? The weekly chart above illustrates that CCJ is now approaching a strong zone of resistance. If it can close above 12 on a monthly basis, former resistance will turn into support and pave the way for a move to multi-year highs. A monthly close above 12 would also pave the way for CCJ to trade to the 20 ranges with a possible overshoot to 26.00.

Astute investors can use sharp pullbacks to establish positions in strong stocks such as CJJ. The trend is your friend for everything else is your foe.

The need for expansion is as genuine an instinct in man as the need in a plant for the light, or the need in man himself for going upright. The love of liberty is just the instinct in man for expansion.
Matthew Arnold 1822-1888, British Poet, Critic