Uranium stocks displayed notable relative strength early in the day, and that immediately caught my attention. Above is a 5-minute chart of URA, with the SPY shown in the lower pane for comparison. Right from the start, the divergence between the two told an important story.
If you focus on points A and B, you can see that the SPY was trading significantly lower at point B than it was at point A, a clear sign of broader market weakness. URA, on the other hand, behaved very differently. Instead of following the market lower, it held firm and actually made a higher low at point B. That’s relative strength in its purest form, and it was an early signal that the uranium group was under accumulation and could be setting up for a rally.
What made this signal even more compelling was the broader context. If you’ve been following my earlier posts from today, you’ll notice that we saw this exact same relative strength pattern show up in the rare earth stocks and even in some of the drone related names. When multiple, unrelated groups of stocks begin to display the same type of behavior at the same time, it adds credibility to the signal. It tells me this isn’t just a one off move in a single ETF, but a broader shift in where buyers are focusing their attention.
Getting back to the uranium stocks, once URA pushed through its intraday highs, the move really started to gain traction. The ETF continued to rally for several hours, confirming the early relative strength we saw during the market’s weaker moments. Individual names within the group followed suit. Stocks like UEC, UUUU, URNM, and NNE all showed similar patterns and went on to post solid intraday gains.
This kind of coordinated strength across an entire group is something I always pay close attention to. It often marks the early stages of a potential trend rather than just a short lived bounce. Now the key question is whether we see follow through. I’ll be watching closely to see if this strength carries into tomorrow’s session.
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