U.UN just broke a decade long resistance lineU.UN just broke a decade long resistance line, in an avarge uptrend for the past 16 months.
SRUUF trade ideas
Uranium Preparing for an 80% Move UpwardsThe SPROTT Physical Uranium Trust TSX:U.U is showing a triangle formation on the daily chart. There is a number of reasons why I am inclined towards higher Uranium prices:
1. Rising inflation.
2. Rising commodity prices.
3. Supply chain problems (although doesn't apply to Uranium that much).
4. Energy Crisis!
5. The world starting to see that Nuclear energy is the proper choice forward until we can transition to fully renewable energy infrastructure in 50 years or more. (this one will not affect price soon of course).
6. Uranium is not expensive as fuel at all. It costs only 5% of the annual expenditure of a nuclear plant. So price has a lot of room to go up before it's considered too expensive.
7. We have a Physical Uranium Trust now. So the market has direct exposure to physical uranium that was never there before.
With all that, the move hasn't yet been confirmed because we haven't broken the top of the triangle yet. Keep watching this post as I update it. If you are interested in this trade, set up an alert on TradingView and follow me for an update for my trade setup.
SPROTT PHYSICAL URANIUM TRUSTPOSITION TRADE
U.UN (TSE), SRUUF (OTC)
Catalysts:
The uranium market is in structural supply/demand deficit despite nuclear energy being an essential and growing form of clean energy.
Financial players and a utility contracting cycle mark near-term catalysts.
I expect both physical uranium and uranium producer baskets to aggressively outperform over the coming 1-3+ years.
Financial players significantly escalated their role in the uranium market, in particular, the Sprott Physical Uranium Trust (OTCPK:SRUUF). This trust exists to provide investors exposure to physical uranium, but in so doing, they take and sequester physical pounds from the market. Note that Yellow Cake plc (OTCPK:YLLXF) is a similar trust for UK based investors, although it is much less active in purchasing uranium.
SOURCE : Uranium: Potential Trade Of The Decade, SEEKING ALPHA, Live Hard Investing, Feb. 10, 2022
seekingalpha.com
SPROTT Physical Uranium Trust. A Simple Short-Term Trade.TSX:U.U is showing an ascending triangle on the hourly that spans the past eight trading days. This is a simple trade with the stop loss below the swing low and the target at the height of the triangle. Gives us a 6.83% potential profit to 3.1% potential loss, a reward-risk ratio of 2.22. Of course that depends on whether the triangle breaks upwards in the first place. If it does, we have a confirmation and the trade is on. I anticipate it going up because the Dollar is weakening and commodities are going up. Good luck with the trade.
