If You Fancy A Gamble…
The Uranium sector can be fun/scary in equal measure. Many of the charts are looking very interesting. One of my favourites (which I’ve been holding since very close to the sector lows), is poised for ‘moment of truth’…
Edit – Cameco chart added – also looking very tempting at this point.
I like the U’s also. Go!
High risk, but potentially very high reward.
Hi NorthStar! I’m super fascinated by the semi circles at the bottom of your charts. Is there a post where you outline how you set them up? What you look for when establishing time cycles? I feel that could be usefull in my own trading framework. Regards, Patrick
Hi Patrick. Cyclical price behaviour on a timescale of years/decades is usually very evident. Amongst cycle experts, my approach is likely viewed as inadequate, but I’m just doing my own thing. In truth I’m applying a similar approach to the ones I’m familiar with in weather and climate analysis. In many cases it makes as much sense to use lines of best fit, especially when trying to project into the future. I find cycles are easier to identify using the lows, because they tend to be more equally spaced than the peaks (which are usually left of right translated). Gold for example has lows at approximately 2000, 2008, 2016, 2024 etc etc, but the peaks can come anywhere in between these dates. I follow many cycle guys/girls, but like forecasting the weather, its often necessary to reconsider and change your views on the shorter timescale cycles as real time price actions fail to comply with expectations. I admire those who have enough patience to map out the daily and weekly cycles, but my strategy is to buy, accumulate on large pullbacks, and hold into the PM peak in 10 years or so.
Thanks! I’m gonna start experimenting with them soon, hope it helps me see through another tangent.
It probably will, but be careful – you may get some criticism if the cycles guys don’t like your cycle placement. Mine tend to be fairly ‘fluid’, as I only use them as a backdrop to large (decade long) moves. As mentioned, I also use a ‘best fit’ methodology which isn’t very ‘pure’ if you are heavily into cycle analysis.
Weinstein’s Stage Analysis still has this in Stage 4 Bear right now with price below the 30wema on the Weekly chart and the 200wma below the 30wema. At best, it is in Stage 1 Basing but I use Weinsteins Stage analysis to determine the outlook on longer cycles as longer cycles dominate shorter ones. Compare UUUU or CCJ Weekly chart configurations with respect to these two key Weekly moving averages to say Gold or the SPX. Perhaps the sector has bottomed but Basing can sometimes take years so until the 30wema starts to become support at 5-6 month ICLs, I would just stay away (Note that CCJ has found resistance at the 30wema this week so far).