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Uranium Resources Incorporated Up 8.81% Today

 

By Bob Kirtley

skoptionstrading.com

URRE Chart 30 Nov 2010.JPG

As the chart shows Uranium Resources Incorporated (URRE) has increased seven fold since August. The yawning gap between the stock price and the 200mda which is way out of kilter gives us cause for concern. However, if uranium prices keep making progress then investors will be enticed to take a position in this sector. The market capitalisation of URRE is around $320 million with 92 million shares outstanding, so it doesnt take much to push the price either way. The RSI is standing at 81.57 and rubbing up against the ceiling in terms of being overbought, along with the MACD and the STO, however, uranium prices are slowly but steadily heading north as the chart below indicates. It looks like a csae of the fundamentals ruling the day over the technical analysis, at least for now.

Uranium Chart 30 Nov 2010.JPG

Uranium Resources, Inc. explores for, develops and mines uranium. Since its incorporation in 1977, URI has produced over 7 million pounds of uranium by in-situ recovery (NYSEMKT:ISR) methods in the state of Texas, where the Company has ISR mining projects that are currently being restored at its Kingsville Dome, Rosita and Vasquez projects.

URI’s intrinsic value lies in the 183,000 acres and 101.4 million pounds of in-place mineralized uranium holdings in New Mexico. The Company acquired these properties over the past 20 years along with an extensive information database. URI’s strategy is to capitalize on the prospects for long-term strong global demand for uranium by fully exploiting its resource base in Texas and New Mexico, acquiring new assets and through joint ventures or partnerships.

In conclusion we are of the opinion that now is a good time to pick up a few of your favourite uranium stocks, go gently and adopt a ‘layering in’ approach to your acquisitions programme. Also be prepared for a lot of volatility in future, try and stick with the big picture and ignore the white noise.

We have toyed with the idea of running an Accumulator whereby we make a trade and then use the total proceeds for the next trade and so on. So the stake and any profits are rolled into the next move, if you would like to comment on this idea, then please click here.

Over in the options trading pit the team have are updating the progress chart to include closed trades, now 53 winners and out of 55 trades, having been stopped out of a trade with a profit of 41.84% made in just 8 days.

sk chart 19 Nov 2010.JPG

The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

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For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.



Disclosure: URRE