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« Extract says activities continue after bid for parent dropped | Main | SK OptionTrader Banks Gains of 116%, 108% on GLD Calls Before Gold Correction »
Tuesday
May102011

A Bottom now seen in Uranium?

Ranger Mine 11 May 2011.JPG
Ranger Mine

We recall that the spot uranium price had run hard early in the year as speculators returned from their forced hiatus to pick up on one commodity which had been lagging in the great commodity price push. Uranium reached over US$70/lb before a bit of a pullback to the high sixties until the tsunami hit Japan. Those speculators subsequently bailed once more and the spot priced plunged on heightened activity before finding calmer waters of stalemate in the mid-fifties.

Having decided that speculator panic-selling had now abated, utilities came back into the market last week to pick up cheaper supplies. As industry consultant TradeTech notes, the utilities were also accompanied by uranium traders and speculators getting back in. Seven transactions were reported totalling 900,000lbs of U3O8 equivalent. As the week progressed, settlement prices ticked upward.

TradeTech has thus moved up its spot price indicator by US$1.25 to US$56.25/lb.

There were no new transactions or orders reported in the term market last week albeit TradeTech notes there remain several orders in the pipeline seeking sellers. The consultant's mid-term price indicator remains at US$59/lb and long-term at US$68/lb.

Impacting on uranium price sentiment at present is the plight of Energy Resources of Australia's globally significant Ranger mine. Production has ceased due to flooding and will remain that way for at least some months. The company has announced additional capex for water abatement measures but the fate of the mine is as yet unclear. The loss of Ranger production to global supply provides upside impetus for uranium prices.

By Greg Peel of msn Finance


We recently reported that www.skoptionstrading.com had closed another two trades for profits of 108.52% and 116.67% respectively, this was followed with two more profitable trades so the chart and stats have been updated accordingly.

Over in the Options pit, our model portfolio has achieved an average return of 41.92% per trade, 78 closed trades, 76 closed at a profit, or a 97.43% success rate. Average trade open for 46.45 days.



sk chart 04 May 2011.JPG



The above progress chart shows our performance when profits are re-invested, however, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today.

Stay on your toes and have a good one.

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Reader Comments (1)

Energy resources problems are not impacting the market ; It is the Japan problem that is causing the problem . They are now closing another plant for fear of what would happen to it in an earthquake. All these reactors offline and other countries closing plants until safety checks have been made is a negative effect on the market. Investor sentiment towards this sector is also a negative

May 11, 2011 | Unregistered Commenteruranium bug

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