Atomic bombs contain one famous element to wreak its havoc: uranium.
This radioactive metal is unique because one of its isotopes is the only naturally occurring isotope capable of sustaining a nuclear fission reaction.
It occurs naturally in low concentrations of a few parts per million in soil, rock and water, and is commercially extracted from uranium-bearing minerals such as uraninite.
Uranium is a raw material. Yet today, most raw materials sold off.
We caught the rally in early 2017 in URA-the Global X Uranium ETF.
Currently, we are watching URA for its potential explosive bottoming chart formation.
Nevertheless, we are hoping, should a rally occur, it’s not because of its potentially harmful explosivity.
Commodites such as oil, sugar, coffee, grains, and gold, all fell, while the equities market gained.
All, except Uranium.
That rose by 3.29%. And on the daily charts, entered into an unconfirmed accumulation phase.
The weekly chart shows tremendous support at 12.00. URA closed today at 13.80.
The blue line or the 50-week moving average is a reliable indicator for reversal trends.
URA has traded up and down and around the 50-WMA for some time.
We are looking for a weekly close over 14.00.
The green line is the 200 week moving average. URA has not traded above that level since 2011.
The distance between the 50 and the 200 WMA is narrowing. That could turn out as significant.
Speculating on anything other than the technical ramifications-well, let’s just say, some things are better left unsaid.
I’m doing a rare early, free webinar Tuesday at 6 PM EST, to help you catch emerging big swing trades like the one featured today in uranium.
S&P 500 (SPY) The best part, we get to write about how it broke the stubborn 274, or top of the recent trading range. Now pivotal, if 274 holds could see 279.
Russell 2000 (IWM) After 2 inside days, this closed on new all-time highs. 164.00 pivotal with 168 still the target if holds
Dow (DIA) 250 biggest resistance
Nasdaq (QQQ) Nice move after the gap fill from last week. 175.21 the current all-time high