Ur Energy building a base

Aug 1st, 2014 – Comment

What the uranium sector needs is a boost in demand to take hold.


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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URE LOGO

Hello Lou,

Firstly, thank you for your article and comments on Nevada Copper  about a month and half back. Secondly, in order to diversify my holdings and to capture gains, I sold 1/4 of my Nevada Copper holdings last week to buy Ur Energy. Your feedback and insights would be greatly appreciated.

Thanks and Happy Capitalism,

Amit

 

Hey Amit,

I am glad that things worked out with Nevada Copper Corp. (NCU TSX) and that you are enjoying the pleasure of profits! When I inspected the charts for NCU on June 4, 2014 the stock was trading for $2.10. The research indicated that we might expect more to come and it was advised to hold your position for further gains. NCU ran to a high of $2.80 by early July producing a nice gain in just over a month.  Your decision to capture profits and diversify your holdings on the run up speaks to an advanced appreciation of personal asset management.

Ur-Energy Inc. (URE  TSX) operates the Lost Creek in situ recovery facility in Wyoming and is in the process of expanding other development projects. Note the emphasis on development not exploration. URE enjoyed a nice run up in the first quarter of 2014 as the sector moved higher on reports that Japan was on the verge of restarting its fleet of nuclear reactors. Earlier in the year readers asked for my opinion on Bayswater Uranium Corp (BYU TSXV) and Fission Uranium Corp. (FCU TSXV). In comparing the charts of those companies they all have exhibited a pop in Q1 and a drop in Q2.

An investigation of the charts for URE will assist you in managing your new investment

 

URE

The three-year chart exhibits the Q1 pop and the Q2 drop. Interestingly the move higher that started in 2013 developed as URE broke out of a range bound pattern in May of last year. The stock broke above resistance at $1.00 and found support along the 50 and 200-day moving averages as it climbed to the early March 2014 high in the $2.10 range. But that was all it had to give. The MACD and the RSI both generated sell signals at the spike high in early March.

 

 

 

 

 

 

URE2

The six-month chart depicts the base that has formed at $1.20 and support below that $1.00. The MACD and RSI are currently neutral at best so I’m not expecting a big jump in the short term. What the uranium sector needs is a boost in demand to take hold. You seem to have found a good entry point for an investment that fits your personal risk profile.

Make it a profitable day and happy capitalism!

 

 

Categories: Uranium
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