Uranium Miner ETF 2 Year Resistance Breakout UPDATEHi 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.
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Stay tuned for more updates on URNM in the near future.
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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.
