Longer-term charts of the Uranium price are constructive
The previous post includes a comment from an NFTRH subscriber that makes some good points about why the move happening now – whether lasting or ephemeral – may be occurring.
Here are the weekly and monthly charts of u3o8. The weekly chart has so far held short-term support and is moving up from consolidation.
If this area holds then it will have been a somewhat severe bull flag correction on the way to higher prices. But more support is around 40 and 34. If the global supply/demand fundamentals truly are ready now then U has already done enough work to support a new rise. If not, there are your lower support levels.
Wild card: the Fed is slamming on the breaks and due to overshoot the bond market in its inflation death struggle. If that turns to acute asset market panic all bets off for most assets, including those with positive supply/demand and long-term structural rationale.
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This Post Has 2 Comments
Gary, a couple of comments that you’re probably already aware. One difference in URA and URNM is that URNM is a Sprott vehicle Both URA and URNM hold similar miners with different percentages Both hold SPUT/SRUUF, the Phyiscal Unit Trust. Sprott has been “Hoovering up” the physical spot U308 market since it became listed a year ago. SPUT has been trading up to a 10% discount to NAV
There are a ton of fundamental drivers that “should” drive U308 prices higher soon. Japanese restart (not shutting down) news is already baked in. Germany is ongoing a political debate about not shutting down it’s reactors. There is a strong market coming for SMR’s that Gates is championing. THe entire green movement has come to grips that nuclear is the only green option to keep the lights reliably on. FYI, Germany burnt the most coal on record last year, and is stockpiling this year. One of the most Google words in Germany is firewood.
Also, the seasonality is big for utility buying. U308 is a very opaque market and hard to get real data. .Carry traders .
There is also the enrichment angle. RUssia supplies of 40% of world enrichment and there is fear that may not be available, thus, impacting the need for more yellow cake.
All in all, a lot of “Thesis” factors on why uranium “Should” go up .But the market is volatile. BUt one thing I like is that there is realistic chance it will decouple from overall market influence. True contrarian play but you must be able to stomach the huge downswings
My education continues and I thank you for that, Anony.
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