Christopher Wal...'s  Instablog

Christopher Wallace
Send Message

Managing Director - CCC Investment Banking

  • Energy Fuels Breaking Out 0 comments
    Feb 12, 2014 11:54 AM | about stocks: UUUU

    During December last year, I published two articles on uranium, one on the commodity itself which discussed the supply/demand fundamentals and new catalysts which I believe will push that commodity higher in 2014 and for years to come. I followed up that with an article on mid-tier producer Energy Fuels, which I felt offered the best fundamental value in the space. My first purchases of UUUU were at $5.60 and I have been adding on the way up. The fundamental picture remains the same as when I published in December, but the technical picture has improved. In this Instablog post, I want to briefly review that technical picture and explain why I have added to my position in that stock.

    The steep downtrend that halved the stock from its August levels was broken about the time I published my article. A higher high was achieved in January and a new uptrend was formed at that time. Like many stocks that are in a bull market, UUUU is going through the familiar pattern of rally, consolidate, rally some more, consolidate again, rally some more. I find that a profitable entry point is to enter as the consolidation phase terminates. The dotted horizontal line at $8.40 appears to be resistance that wants to be penetrated. A successful move above that level would indicate to me that the consolidation phase is over and that a new rally will ensue. Further technical support is provided by MACD making a bullish crossover. Finally, On-Balance Volume defined the downtrend and it now appears to have reversed direction and is defining the uptrend. These factors together suggest to me a continuation of the bullish pattern of trading in UUUU and consequently I have added to my position in here. I continue to look for a 2014 target in the high teens suggesting a potential double from here.

    Disclosure: I am long UUUU.

    Stocks: UUUU
Back To Christopher Wallace's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • $XCO Brutal day. A great mgt team but a near impossible task with so much debt. Debt for equity swaps coming?
    May 13, 2016
  • $GDX at lowest value since ETF was created in 2006. Low during 2008 recession was $15.43.
    Jul 20, 2015
  • $GDX $GLD looks like capitulation. Going speculative long both. Miners look particularly attractive.
    Jul 20, 2015
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.