Mega Uranium: Finds Support
Tuesday, July 10, 2007 at 11:02AM
Uranium Stocks in Uranium Mining Stocks
After falling over 43%, Mega Uranium has found a support level at about $5.25 and we are pleased to report that it has bounced back over $6.00, gaining about 14% in the last few days.

Mega Uranium: Finds A Support

We wrote about Mega needing to find a support level on July 5th and now that is has done that, Mega could be set to test its 50 dma and consolidate gains above the 200dma.

By taking a look at Mega's moving averages, we can see that the 50 dma (blue) and the 200 dma (red) are on a collision course. What remains to be seen is if the 50 dma goes below the 200 dma or whether it bounces on the 200 dma line. If the 50 dma breaks down through the 200 dma then we could see some turbulent times for Mega as technical traders may well sell the stock off due to this negative signal. But if it bounces, then we should be Mega making a substantial recovery.

Mega Uranium continues to be marked as a BUY on our uranium stocks portfolio and we see it as a bargain at these prices.

This recently recovery gives us a fair bit of confidence that the majority of the carnage is over for Mega and it can now look to move up higher and catch up with the uranium price.

Mega Uranium has a market capitalisation of $888.69M and trades as MGA on the TSX.
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