Well, I'll give myself an A for effort, but a C- for timing. But, I can bump that C- up to a B+ if my intuition is right as we head into the last few days of 2013 and the first few of 2014. What I'm talking about is a bullish commentary I penned back on November 26th regarding Uranerz Energy Corp. (NYSEMKT:URZ), Uranium Resources, Inc. (NASDAQ:URRE), and Ur-Energy Inc. (NYSEMKT:URG). All three stocks were perking up, and more than that, the buzz surrounding URG, URRE, and URZ was getting louder. More often than not, when the fervor and bullish action and chatter reaches the levels they had reached a month ago, an explosion is right around the corner.
Not this time though. This time, nothing. Ur-Energy, Uranerz Energy, and Uranium Resources all fizzled, doing next to nothing over the course of December.
Good trading ideas never really die, however. They just tend to retreat until a better (read "more opportune") time. Looks like that time is right around the corner.
If it were just one of these stocks starting to perk up again, in a technical sense, it honestly wouldn't even be worth bringing up. To see them all revving their engines though? That's not a coincidence. Take a look.
For Ur-Energy Inc., the stock finally pushed up and off its short-term moving average lines and broke past a key ceiling... a couple of key ceilings, actually. Better still, the big breakout surge from URG unfurled on very high volume.
Uranium Resources shares have been the most volatile of the big three uranium names in question, up from a November low of $2.37 to a late-November high of $3.55 back to a December low of $2.58. But, over the past couple of weeks we've started to see URRE rekindle its uptrend, this time at a more sustainable pace.
As for Uranerz Energy, it's my favorite of the three. As the chart below indicates, URZ soared above its 200-day moving average line (green) in late-November, prompting my comments at the time. Shares immediately eased back in early December, but since then have found support at the 20-day average line and gently rekindled the move above the 200-day average. This second wind, unfolding at a more even, sustainable pace, should be one that "sticks".
Bottom line? It's time to wade back into a Ur-Energy, Uranerz Energy, or Uranium Resources trade. Yes, I know the market's not buzzing yet. That's the point. If you actually wait for Uranium-Mania to develop again, you've waited too long. The time to sneak in is when nobody's looking, or nobody cares... like now.
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