In light of the breakout in base metals (which I am still looking at as only a trade via DBB), and bottoming situations in other areas like Uranium (hat tip to subscriber ‘Hammer’) and the REE’s, it is time for a brief update on mineral commodities.
We have covered DBB in the weekly report and the post linked above discusses the technical situation on the GYX Industrial Metals index. Let’s briefly review REE and Uranium.
REMX is an ETF comprised of Rare Earth Element companies. A break above resistance would target
41.50 [edit: 40.50] or so.
The individual stock I am going to speculate with is TAS. I bought a few shares on this flag down to the SMA 50. MACD and RSI are green and I can make sense of the chart. If it drops below 1.00 it will probably be sold. Tasman is highly thought of by a fundamental analyst in the NFTRH subscriber base and I respect his opinions. It is also hyped a bit too much so, caveat emptor.
Over in the Uranium patch, URA has broken above resistance in a similar bottom to the one we ‘played’ from Q4 2013 to Q1 2014.
The break has clearly been driven by the higher end of the food chain like CCJ. A junior that we highlighted previously, URG has not gotten going but it is above the SMA 50 and MACD and RSI are positive by just a bit. I do not own it, but wanted to highlight it for you for frame of reference between what is going on with the big boys (per URA above) and the little fellers like URG. If the sector move is real for an extended trade at least, one would expect the little guys to get in gear eventually.
The least risky bet for Uranium bulls however, would probably be URA because it is on a breakout and has a clear ‘stop loss’ at the 200 day MA.
A quick update for you to consider. As noted over the weekend, these 2-3 weeks are a little scattered for me with commitments during the week. But I had time to squeeze this view of a couple mineral sectors in.