Not only is the Sprott Uranium holder (SRUUF) attempting a break out, but it’s recoiling to test the breakout area as would-be support
[edit] Longer-term chart added to show clear support that was tested prior to this move.
Sprott Uranium holder SRUUF broke a long downtrend channel, as led by some of the better Uranium stocks. What’s more, it reversed downward yesterday and is still technically testing resistance. I think it is going to break through that resistance (17.20) in part because…
…the macro is playing ball to our favored theme, which is silver leadership over gold and by extension, a more pervasively positive tailwind for the wider commodity trades. Here is the Silver/Gold ratio doing as expected in pre-market, looking for a second leg up.
As such, you can take a dart, throw it at your favorite commodity or commodity producer/prospect, and chances are you’re going to do well as long as the Silver/Gold ratio plays ball.
As just one example, I hold a favored uranium stock and also SRUUF, which I may increase. Again, the commodity trades on balance are dependent upon the SGR above. It’s not rocket science.
Let’s add a chart of SRUUF with more history to show the clear support zone tested before this up move. Technically, this chart looks like it could want 20 to 23, if not a new high.
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