Today was an impressive day for uranium and nuclear stocks, with the URA ETF soaring 5.45%. After a challenging five-week period of selling pressure, it appears these stocks may have finally found a bottom. The sharp rebound today suggests that sentiment could be shifting, and traders like myself are paying close attention to potential buying opportunities.
One stock that stands out to me is NNE. Looking at the weekly chart, you can clearly see a well defined upward channel. The channel has multiple touches on both the support and resistance lines, which adds credibility to its structure. Patterns like these are particularly useful because they give a visual framework for potential entry and exit points.
Another encouraging sign is the declining volume over the past five weeks. During a pullback, decreasing volume is exactly what you want to see, it indicates that selling pressure is easing and that the decline may not have strong conviction. This sets the stage for a potential resumption of the upward trend.
Going forward, I’ll be closely monitoring the daily volume on NNE. If volume begins to pick up on pullbacks or during moves higher, it could confirm renewed buying interest and provide a favorable environment for entering trades. My plan is to look for pullbacks within this channel as potential buying opportunities, using volume as a key confirmation tool. Overall, while caution is still warranted, the technical setup in NNE and the broader uranium sector is starting to look promising for those ready to capitalize on a potential rebound. Explore more trading ideas at The Relative Strength Trader
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