Uranium Energy Corp. labouring under a long term downtrend

Aug 20th, 2014 – 1 Comment

At this time there are not many indications that UEC is on the verge of starting a new advance.


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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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UEC LOGO

This analysis will conclude the assignment from Jeff, a listener. He asked for a review of his holdings in preparation for his retirement. His positions include , ,and . The last stock on Jeff’s list is .

I have conducted analysis on three other uranium stocks in 2014. They include , , and . What those assignments identified is that there was a burst of excitement in the sector in the first quarter on news that Japan intended to restart its fleet of nuclear reactors after having taken them offline after the 2011 Fukushima disaster. However the enthusiasm dissipated in the second quarter.

A scout of the charts for UEC will help identify how best to manage this investment.

 

UEC

The three-year chart indicates that a downtrend has been the dominate feature since the spring of 2012. What is also evident is the resistance along the 200-day moving average. There have been trading opportunities along the retreat with the MACD and the RSI  generating a number of buy and sell signals that the astute trader would have put to good use.

 

 

 

 

 

 

 

UEC2

The MACD and the RSI on the six-month chart provided a buy signal in the middle of May when the shares bounced off of $1.00. The stock ran to $1.90 by the end of the month for a healthy gain in just a couple of weeks.  At this time there are not many indications that UEC is on the verge of starting a new advance. This stock is similar to the others you are holding in that it would have to be described as a higher risk speculative investment.

In building your assets to fund your retirement you may want to review your investment policy. High risk speculative investments can make up a portion of your portfolio but I wouldn’t advise that they should comprise one hundred percent of your wealth. Every investor has their own personal profile that they have to manage. You would do well to get a better understanding on the difference between investing, speculating, and gambling.

Make it a profitable day and happy capitalism!

 

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