Uranium Stocks Stay Hot

Many times before an important move begins you will see a sharp sell-off for a couple of days that shakes out the weaker hands hitting all their sell/stops in place. And let`s be very cool and sober for once. When is the opportunity better to fish even impossibly deep sell/stops than on the trading day of the year when the trading volume across all markets is likely to be the lowest of the entire trading year?

Yeah, some of the Black Friday`s Thanksgiving declines in some of the currently most important/watched markets on earth like in Dow Jones, ethereum or oil and gas were certainly bottom worthy.

It is entirely possibly that all these markets explode off their Friday`s bear extremes and move straight back to the high`s of the year until the trading year 2021 officially ends. This main outcome is strongly supported by the seasonal pattern of the US presidential post-election year which on average show a strong rally from a typical intermediate November cyle low to the official year-end.

But also by the simple statistical fact that the period from Friday after Thanksgiving to the end of the year is one of the most bullish windows the year has to offer. Since 1987, S&P 500 has logged gains in 26 of 34 years from the close on Friday after Thanksgiving to year-end.

So far nothing is broken on the longer term charts for the Commodity, Crypto and Stocks Sectors and the sector that I still see as one of the most bullish ones for the next 3 to 6 months is offering wonderful low entry prices right now due to the overall market situation.

Stocks across the uranium industry rallied hard on Tuesday on the back of two big developments that have the potential to send uranium prices soaring in the long term.

1. The Sprott Physical Uranium Trust Fund filing for a new offering of units that should give it the leeway to buy more uranium. Or investor interest in the Sprott Fund is so high that it now wants to issue additional units worth almost 2.2$ billion.

2. The world's largest uranium producing and marketing company, Kazatomprom, formally signed an agreement to invest in ANU energy, a new physical uranium fund to be established in Kazakhstan. Its sole purpose is „to store physical uranium as a long-term investment.“ The fund is expected to be a mini-Sprott that will buy uranium from the spot to meet demand for its units. Investors in emerging markets are expected to buy these units in order to gain exposure to uranium markets.

A leading uranium player with huge bull market potential is Canadian Denison Mines Corp. (DNN) which shares ended Thanksgiving week with a quite acceptable loss of -7.91%:

A new long-term DNN bull market began at # 1 // 0.19$ coronavirus panic lows. This now underway bull market is a stronger countertrend cycle within general secular bear market what started at 2007 alltime-high (15.01$).

Think best, cause most valid up setup, is this above classic/textbook 13 Fib number GUNNER24 Up. It shows that the Blue Arc radiated main resistance on monthly closing base til this year August close. The September 2021 opening auction was first month open above the stubborn Blue Arc braker and this next strong monthly buy signal activated the run into 1st double arc what represents natural resistance area and uptarget range on a monthly base.

Since September 2021-Blue Arc upward break = unusual heavy monthly buy candle the price is pushing hard to overcome the 1st double arc finally. Price is denting and piercing the 1st resistance space from below. This November candle was able to pierce the 1st by large, but til today this next try to overcome the 1st spahe of influence finally to the upside must be rated as negative.

See, that the September 2021 (Sep21) candle not only broke the Blue Arc finally but also was able to close back above the 2*1 Angle. Therefore, this very strong month of September 2021 delivered a double buy candle on monthly closing base. And this unusual signal strenght and the fact that the 2*1 Bull Angle should support strongly for the months to come is the main reason for why DNN shares within this bull market cycle should at least rally further into the next higher 2nd GUNNER24 Double Arc uptarget.

Also because the resistance state of the 1st double arc should decrease with the highs achieved in October and November this 1st should be broken upward sometime in the nearer future and the shares should normally be able to at least backtest the 2.75$ // 2009 countertrend spike high backtest point and likely also the upper line of 2nd double arc thereafter:

==> The 2.75$ is a main resistance upmagnet for the coming trading year 2022!

Below is a nice working 2 Candle weekly up, starting at # 1 // cycle lows of March 2021. It shows that the downleg that started at 2.14$ November 2021 top = this year high so far should just be the next normal corrective wave within a continuing bull market: