Uranium is on our radar.
While many think of nuclear power, uranium is also used for a variety of medical, industrial, and defense purposes.
It’s also used as an alloying agent for aluminum, copper, lead, magnesium, and other base metals.
Think about that last point…
If base metals are outperforming, then uranium as an alloying agent component should benefit as well.
FUN FACT: Through 2035, Uranium demand is anticipated to exceed supply.
So let’s look at some charts we’re watching closely while this trend continues.
Global Uranium ETF (URA): Uranium is outperforming (weekly chart) on an absolute basis. It’s also outperforming the S&P 500 and Base Metals on a relative basis:
Over the longer term, one of the individual names we might be able to take advantage of in the outperforming Uranium space is Cameco Corporation (CCJ), a company that is engaged globally in providing uranium fuel to generate clean, reliable, baseload electricity:
Cameco Corporation (CCJ) – Weekly Chart
As you can see, Cameco is outperforming on both an absolute and relative basis.
Looking at our proprietary Market Rover trading tool, we can confirm the CCJ longer term trend (green).
And before you think this is just a long-term, down-the-line trend to watch, Rover actually tipped us off to two relatively recent trade ideas on March 22nd and May 7th.
Both trades hit projected Target – 1 (T-1) and Target – 2 (T-2) price objectives:
Longer term, we want to continue to ride this trend while taking note of any changes in the Market Rover software.
That means watching the changing trends and potential price changes, and keeping an eye on any trade ideas Rover picks up for us along the way.
The Bottom Line: We’re staring down a lot of uranium demand in the next decade!
So we expect to see more trends developing for uranium plays – and more trade opportunities, too.
The best way we keep up with these opportunities is with our Market Rover software…
It helps keep you on the right side of all major trends… If you don’t have the Market Rover – here’s your shot to take it on a test run with our TRIAL.
See you on the next one,
JB & Serge
