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Message: Riding the Uranium Craze

http://seekingalpha.com/article/238887-riding-the-uranium-craze?source=dashboard_stocks-sectors

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Since uranium stocks have been on such a roll lately I did some research and tried to put together a watch-list of some of the strongest charts from this sector from the US & Canadian markets. Essentially they are out of my “buy” range as I like to buy momentum, but I don’t like to buy stocks that are too overbought. I believe this sector as a lot more to go and ideally I’d like to see some healthy consolidation at the current levels.

Volume is suggesting that accumulation is going on and given that all of these stocks are trading under $10/share, it’s likely that this ride isn’t going to be over until these stocks hit double digits and beyond. If you have the tolerance for big intraday moves one could start accumulating these as this sector is one of the bullish ones out there. I don’t currently own any, but this is a good example of a sector that isn’t dependant on what the general market is doing and I believe it’s safe to position oneself accordingly.

Uranium Resources (URRE), Denison Mines (DNN), Ur-Energy (URG) are the strongest of the bunch from my perspective. Those are the ones you really want to pay attention to when this sector has any sort of pullback. Two other stocks that I came across just before I was going to hit send are Cameco (CCJ) and MGA.TO (just barely broke over a dollar). I exclude anything under $1/share. Click on all charts to enlarge.

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