URANIUM ETF Cboe ( $URA 1M) uranium prices can go nuclear !
One random stranger on internet (John Polomny) said that uranium commodity price is ready to begin a new cycle I agree.
Those of you that follow me knows that I like to buy things low to sell them high.
I can’t speak for the spot price but today I will give my view on the Uranium ETF from CBOE.
This particular ETF is in a monthly downtrend since 2011 which culminate in JAN 2016.
From there we can se the beginning of a bullish divergence on the monthly RSI and a significant uptick in volumes in JAN 2017.
From there the price slowly decreasing while volumes are also decreasing in a structure that I speculate can be read as a falling wedge.
I must agree that in first look at the structure it looks like a descending triangle
but to me (in retrospect) it makes more sense to draw it as a falling wedge due to the volume signature during the pattern.
falling wedge can be meet at the end of a trend either as continuation pattern or as reversal pattern depending on the direction of the breakout.
Breakout if bullish should be characterized by huge volume and of course huge green candle
We are still to early to begin to talk about entry point, targets and stop loss. I’m first waiting to see a clear breakout + monthly trend reversal (higher lows and higher highs) but I will definitely keep a eye on this.
As time goes by, I will keep you updated on the evolution of the asset, so make sure to follow me on Tradingview
Disclaimer: This is not financial advice as I’m not a financial adviser.
This is just my knowledge on what can be said from the chart.
Due to the volatile nature of the cryptocurrencies market, it can change on a day to day basis.
Everyone is wise to manage their risk properly when considering any trading decision or activities.
PS: I cannot emphasize enough the risk associated with the activity of trading ETF due to the imaginary nature of all paper contracts, the reason why I prefer mainly trading cryptocurrencies instead of more “traditional” assets. On the other end without total systemic collapse it can quickly become a good trade opportunity .
Those of you that follow me knows that I like to buy things low to sell them high.
I can’t speak for the spot price but today I will give my view on the Uranium ETF from CBOE.
This particular ETF is in a monthly downtrend since 2011 which culminate in JAN 2016.
From there we can se the beginning of a bullish divergence on the monthly RSI and a significant uptick in volumes in JAN 2017.
From there the price slowly decreasing while volumes are also decreasing in a structure that I speculate can be read as a falling wedge.
I must agree that in first look at the structure it looks like a descending triangle
but to me (in retrospect) it makes more sense to draw it as a falling wedge due to the volume signature during the pattern.
falling wedge can be meet at the end of a trend either as continuation pattern or as reversal pattern depending on the direction of the breakout.
Breakout if bullish should be characterized by huge volume and of course huge green candle
We are still to early to begin to talk about entry point, targets and stop loss. I’m first waiting to see a clear breakout + monthly trend reversal (higher lows and higher highs) but I will definitely keep a eye on this.
As time goes by, I will keep you updated on the evolution of the asset, so make sure to follow me on Tradingview
Disclaimer: This is not financial advice as I’m not a financial adviser.
This is just my knowledge on what can be said from the chart.
Due to the volatile nature of the cryptocurrencies market, it can change on a day to day basis.
Everyone is wise to manage their risk properly when considering any trading decision or activities.
PS: I cannot emphasize enough the risk associated with the activity of trading ETF due to the imaginary nature of all paper contracts, the reason why I prefer mainly trading cryptocurrencies instead of more “traditional” assets. On the other end without total systemic collapse it can quickly become a good trade opportunity .
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