Yesterday I said I’m not catching falling knives in
$UUUU and plenty of other uranium names that were opening with ugly gap-downs today..
That still stands from a broader perspective.
But timeframe matters.
Short term, I can absolutely see a bounce here.
As I pointed out to subscribers, I like
$URA around 33-34, and I’m starting to see some uranium and nuclear names approach levels where a counter-trend rally or backtest becomes increasingly likely.
In
$UUUU specifically, yes, the $5 area would still be ideal from a bigger-picture perspective.
But looking at the horizontal support here, this name looks due for a breather first...
Higher timeframe: still careful.
Lower timeframe: bounce potential is building.
That is why timeframes matters.
$UUUU | Falling off a cliff....
Another brutal selloff, now below $8.50.
I'm not catching this falling knife, but in the $5 range? That's where I'd become VERY interested from a long-term investment perspective...
Patience. Price matters.