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Going Critical
In staff personal accounts here at Cestrian we’ve had a good deal of success with uranium sector stocks. The fundamentals in this niche metal sector are very strong. In essence, if the climate lobby is to prevail - and we think it will - then more electricity has to be generated using nuclear power, because you can’t make enough of the stuff at the time it is needed using renewable sources alone, and because the environmental pressures on coal- or gas-fired power generation are too strong for these sources alone to fill the gap.
If you’d like to get smart on the fundamentals in the sector, you may like to use the same source that we do, which is the Uranium Insider Pro newsletter published by sector supremo Justin Huhn. You can read all about it by clicking THIS LINK which will take you to their service. In short though, it’s looking good for uranium spot pricing and for uranium mining.
We have little to add on the fundamentals side; where we’ve been able to be successful though is by using our standard Elliott Wave & Fibonacci Level chart methodology to apply to the Sprott Physical Uranium Trust ( $U.UN in its native Canada, or the US ADR $SRUFF). We’ve also banked nice gains from a range of uranium miners. Right now the sector has endured a pullback; we believe the move-up is coming soon.
Below we lay out our take on the Sprott Trust and on the mining ETF URNM 0.00%↑. We’re long both in staff personal accounts. We’ll walk you through where we believe the risk-adjusted ‘buy’ range lies, where you might consider banking gains, and where you could place stops to manage the downside risk.