The recent pullback in Uranium stocks looks like it is nothing more than a healthy pullback to shake out weak hands. As much as it might hurt when stocks pull back, the recent pullback looks to be a healthy one. As I’ve written a few days ago, the fact we might be in the earliest stage of a potential bull market in Uranium makes it highly likely we witnessed a huge opportunity to add to existing positions or to initiate new positions as opposed to being fearful about a potential top forming. A few other things that make me feel pretty confident about my assumptions is the fact most traders missed the first run-up. DNN – Denison Mines’ price recovery indicates decent buying pressure. It also validates my assumption entering strong stocks is typically rather difficult as windows of opportunity tend to close very quickly. One more thing that corroborates my bullish assumptions is U.TO’s price behaviour. I anticipated and outlined this price behaviour months ago. The fact U.TO is acting more or less exactly as I thought it would makes me extremely bullish. The reason is simple. Whenever a stock or sector acts as expected I consider to be trading in a ‘flow state of mind’. When stocks ‘act right’ it is the market’s way of telling me to push it. I have 4 Uranium sector overview charts on my public list. The message I want to convey should be unambiguous. I believe Uranium stocks offer outstanding price appreciation potential going forward. As long as the charts act well and as long as I don’t get stopped out I have no reason to change my mind. (more)
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