Uranium Miner ETF 2 Year Resistance Breakout UPDATE
Updated
Hi Guys! This is a Technical Analysis Update on Sprott Uranium Miners ETF (URNM) on the 1 Week Timeframe.
URNM was able to BREAK Above the 2 year Resistance line and close Friday with a Strong body candle close.
It was accompanied with a VOLUME SPIKE, which shows follow through and supports price action.
This is the 1st step in attempting a Trend Change.
2nd MOST important step = Confirming the breakout = Testing Support and Succeeding
So this upcoming Week to couple weeks is crucial for us to stay above Resistance line.
Not only are we ABOVE the Resistance line but we also CLOSED ABOVE the 100 SMA. Again if we confirm SUPPORT, we will now have the backing of 2 MAJOR Resistance turned SUPPORT zones.
Prior to this current move we also maintained SUPPORT on the 50 SMA for 3 weeks before moving up.
In the coming weeks, it is likely we also have a GOLDEN CROSS occur.
This is when the 50 SMA CROSSES ABOVE the 100 SMA. This leads to a confirmation of BULL TREND. So i'd we watching for this.
Bullish Momentum is also currently PRESENT, expressed through the STOCH RSI and MACD.
One thing to OBSERVE aggressively is the MACD.
Particularly on the size of the histogram bars and the slope of the blue/orange line. We are ABOVE the 0 level, universally this leads to BULLISH MOMENTUM and UPTRENDS.
________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on URNM in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
URNM was able to BREAK Above the 2 year Resistance line and close Friday with a Strong body candle close.
It was accompanied with a VOLUME SPIKE, which shows follow through and supports price action.
This is the 1st step in attempting a Trend Change.
2nd MOST important step = Confirming the breakout = Testing Support and Succeeding
So this upcoming Week to couple weeks is crucial for us to stay above Resistance line.
Not only are we ABOVE the Resistance line but we also CLOSED ABOVE the 100 SMA. Again if we confirm SUPPORT, we will now have the backing of 2 MAJOR Resistance turned SUPPORT zones.
Prior to this current move we also maintained SUPPORT on the 50 SMA for 3 weeks before moving up.
In the coming weeks, it is likely we also have a GOLDEN CROSS occur.
This is when the 50 SMA CROSSES ABOVE the 100 SMA. This leads to a confirmation of BULL TREND. So i'd we watching for this.
Bullish Momentum is also currently PRESENT, expressed through the STOCH RSI and MACD.
One thing to OBSERVE aggressively is the MACD.
Particularly on the size of the histogram bars and the slope of the blue/orange line. We are ABOVE the 0 level, universally this leads to BULLISH MOMENTUM and UPTRENDS.
________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on URNM in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
Note
We are on track to hitting Target 1.Note
We have touched our Target #1 area. This snapshot is on the 1 Day timeframe.
Remember that this area is a Resistance zone.
Whats next?
Do we sell off right away? Or do we continue higher? Well the indicators i have on this snapshot give clues to this.
RSI is saying we are ABOVE the 70 level which indicates that we are in OVERBOUGHT territory. But it is also possible we can continue higher in RSI indicating that there is possibility Price can also continue into the Red Rectangle.
STOCH RSI is also in OVERBOUGHT territory but we still are in a Bullish cross. Once Blue line crosses below Orange and it points downwards, it will indicate that selling pressure will come in.
ULtimately i think its possible we can continue further into the RED zone, as high as the Upper border of the zone.
But we are more likely to get rejected here than continue much higher. We have also broke MAJOR resistance which will need to be tested as SUPPORT some point down the line.
I think thats likely sooner than later.
So its an area to consider SELLING positions rather than buying positions.
My Target #2 then would be the Re-test of the Resistance turned Support area.
Note
We have reached the Upper limit of the SELL ZONE.
I personally have exited majority of my position.
There is still some momentum existing but we are also getting to OVERBOUGHT condition and its hard to tell if we will go any higher.
Watch the candle body size. If tomorrow during this current 3 Day candle close, we are this big size. This shows bullishness, possibility of further upside. Might not be much though, keep in mind.
We need to look at VOLUME.
If you see a break above the RED ZONE, on low volume = Likely a fakeout
If you see a break above the RED ZONE, on high volume = This uptrend isnt over
We are overextended ABOVE 21 EMA. I see a test of Support on the 21 EMA coming sooner than later.
If we CONFIRM. This is an area to BUY. If you feel like you missed out URNM.
BUT before you consider buying on 21 EMA, Also watch for a possible retrace to the Major Resistance Trendline we broke.
Note
This is analysis on the 1 week timeframe for URNM
After successfully changing trend by breaking out of Major Resistance.
We have reached almost 20% Above the Sell zone expectations i had on URNM.
Coinciding with our previous High, we could be showcasing a DOuble Top. Keep that in mind.
We are Currently showing signs of a Pullback.
With the presence of a large Upper Wick (Topping tail).
The area to watch is the Previous Sell zone now in Green to act as Support.
It is also where the 21 EMA is moving towards.
The 21 EMA is a wonderful indicator to utilize when we are in a clear Uptrend.
When we are Above the 21 EMA it indicates Uptrends.
During such moves, we get moments where price action will retrace back to 21 EMA to test support.
If and when it shows signs of CONFIRMATION, we resume our Uptrend.
So confirming support on the 21 EMA can be a strong area to add or enter positions if you haven't yet in URNM.
Just remember things may not play out as though and we must always consider all possible outcomes/risks.
If we show signs of confrming Below both:
1. Green Support Zone
2. 21 EMA
Look for a test of Support back on the Major Resistance line we broke above.
Volume can help with how far we go below, if Volume starts to spike during Pullback the area we end up can be lower.
But if volume steadies out, % declines can be less.
If we maintain the current trajectory of the Blue Moving AVerage attached to Volume indicator, we are probably likely to test the 21 EMA, confirm support and continue to move higher.
STOCH RSI is looking towards a Bearish Cross moving Below 80 level. Do note that it has not yet confirmed, with Orange line trailing behind.
If we do cross Below 80 level, this will bring in more Selling momentum.
Longer we stay in a Bearish signal, the chances of a larger % Pullback becomes more likely.
NOtice also the RSI, we had reached Overbought terroritory, now retracing back down.
We have reached the Black moving average.
If RSI moves below Moving average, this indicates further declines are likely. However if we maintain support, a continuation to Upside is more probable.
Energy alternatives is a hot topic these days. I will be monitoring URNM closely to see where this pullback takes us, if in fact an opportunity to take positions arise or we continue way lower.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.