There are several sub-sectors related to Energy, from battery metals/materials (nickel, lithium, etc.) to solar/wind,etc., to uranium. I don’t hold much in the way of traditional Energy (other than NOG, which itself is a unique play on oil and gas, per a 12.22.21 Trade Log entry), but you may recall from the previous update Energy is one of the sectors that is positively correlated with rising long-term yields.
Yesterday the Uranium sub-sector made a move to break upward from the patterns that we noted in NFTRH 687 needed to get going to keep the sector technically intact. Two ETFs, URA and URNM show what look like small Inverted H&S patterns. RSI on each is positive and MACD is negative after the hard sell down, but triggered up. The patterns only measure a little more than half way to the previous highs, but the implication of a successful hold of the SMA 200s could well be new highs in due time.
As noted in the Trade Log, I took today’s pullback opportunity at the SMA 200 to add NXE to current holding UUUU. Recall that in #687 it was noted that NXE was below its SMA 200. Well, yesterday took care of that and that moving average can act as a caution area as well, considering the gap left yesterday. But these gaps could also be breakaway gaps if/as they change the trends in the sector.
For reference, here’s UUUU also looking constructive.
Other items of interest, other than the ETFs, are CCJ, URG, DNN. But I’ll probably stick with UUUU and NXE as long as I am constructive. Maybe an ETF for the more conservative account.
