Canada's Uranium Stocks Depict Positive Trend

Technical investors have their eyes on uranium stocks, which appear to be to turning a positive corner in the past few days. On Thursday, the trend continued with three of Canada's best known uranium companies climbing higher.

Cameco Corp. (CCJ) was up almost 2% Thursday and has now jumped more than 45% since hitting C$15.15 last Friday. Trading as high as C$22.46 in Thursday morning trading, the stock hit its highest level since early October.

Uranium One Inc. (SXRZF.PK) was up 6% Thursday and has climbed more than 24% this week. Meanwhile, Denison Mines Inc. (DNN), up 1% on the day, has fared less well over the past four days, sliding from its C$1.23 Friday close to C$1 in the first hour of the afternoon session.

Don Vialoux, chartered market technician, said:

The latest sector to break on the upside is uranium, with Cameco having a nice little breakout. What has happened is the price of uranium oxide has jumped 25% over the past five weeks and stocks are starting to respond to that.

Comments

[jsampson:]

If I understand it correctly inventory for yellow cakes is very low, so prices must go up, which should dictate stock prices soon after!

2008 Nov 28 10:07 AM