Uranium: Only for the bears?

Invalidation of the breakout, daily closure under the trend channel, and 2 gaps.

Can bulls survive in these conditions?

Let’s start today’s analysis with the long-term chart. What happened? More importantly, what didn’t happen and what are the consequences? Looking at the monthly chart, we see that although the bulls managed to push uranium above the two previous peaks (hit in July 2013 and March 2014), which together form the red resistance zone, this victory was only temporary.

They didn’t hold gained levels, which triggered a pullback and an invalidation of the earlier tiny breakout (monthly closure below both mentioned peaks), which doesn’t bode well for higher prices – especially when we factor in visibly lower volume during last month’s upswing (it simply reduces the credibility of the bulls’ strength) and the current position of the monthly indicators .What impact did this price action have on the medium-term picture? Let’s check the […]

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About the author: StockMan

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