Fission Uranium Corp. showing no signs of a new up leg in the near term

Jan 13th, 2016 – Comment

A trader not a holder


About the Author

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.


Read the author's full profile.


Further Research

Read more about Uranium.


FCU LOGO

Today I will conclude the comparative analysis between Denison Mines Corp (DML TSX) and Fission Uranium Corp. (FCU TSX) for Todd. This will be the second time that I inspect the situation at FCU. The last was on May 9, 2014 when the shares were trading for $1.10.

Phil wanted my thoughts on the stock and the research indicated that he could expect continued selling pressure. The shares had topped out near $1.70 in late March of 2014 as the MACD and the RSI generated sell signals. The shares began a retreat that saw FCU break below support along the moving averages and $1.20. It was advised that support at $1.00 had to hold or we could expect a retest of support at $0.80.

Unfortunately by October of 2014 the shares were trading near $0.65. Another probe of the charts will inform my analysis.

 

FCU

The three-year chart indicates that 2015 has not been generous to shareholders. The bounce off the October 2014 lows came to an end in March of 2015 as a double top formed indicating that investors could expect a trend reversal. The death cross that surfaced in July sent the shares careening to a 52-week low of $0.53 by early December of 2015.

FCU moved higher off the lows advancing to near $0.82 where it met resistance. The shares were overbought at that point as indicated by the MACD and the RSI.

 

 

FCU2The six-month chart provides a close-up of the overbought situation that had investors booking profits as the stock moved off $0.82. There is little to suggest that we can expect a new leg up in the near term.

In your evaluation of DML vs FCU it would be worth taking another look at your assumptions. The research that I conducted on your behalf indicates that both companies operate in the Athabasca region of Saskatchewan not just DML.

From a technical perspective I would call this a pick em with the caveat that you trade them for profit.

 

Next time I will audit the charts of Victoria Gold Corp. (VIT TSXV) for Markus.

 

Make it a profitable day and happy capitalism!

Categories: Uranium
Content © Relentless Economics - Charts courtesy Stockcharts.com - Employees Entrance - Optimization Media