We’ve been reviewing several junior gold stocks lately. Let’s mix it up and take a look at a base metal junior. Enter uranium-sector junior Centrus Energy Corp (LEU). Centrus Energy Corp. supplies nuclear fuel and services for the commercial nuclear power industry in the United States, Japan, Belgium, and internationally. The company operates in two segments, Low-Enriched Uranium (LEU) and Contract Services. Its LEU is a component used in the production of nuclear fuel for reactors to produce electricity.

Benchmarked against the Nasdaq 100, LEU stock broke out of a 5 month descending broadening wedge in January, backtesting the breakout in late March. We also see a possible bullish flag under construction in the ratio with breakout this week. On LEU’s nominal chart, we also see a breakout and backtest of a descending broadening wedge. However we see a possible bullish pennant with breakout attempt happening this week. Breakout from the bullish pennant gives us a possible upside of 22% at a price target of 4.1. Traders going long on LEU can use a weekly close below the top rail of the bullish pennant as a possible stop. Bring your own fundamental analysis and good luck! -Harry