As we can see from the Aurora’s chart the stock price was drifting lower and then bounced at the 200dma for a gain of $1.50 or 10%. The RSI has recovered from negative to neutral, the MACD and the STO are in negative territory but have turned upwards so we could just be in for a little run in the near term.
There has been no major news since we last wrote about Aurora on the 5th June when they commenced their drilling programme, which is a little disappointing in our opinion. We are aware that investments such as this one should not be tracked at a ‘micro’ level and that it takes time to implement such programmes. We would have preferred an interim news release as it has been six weeks since the last one and as we know investors like to be fed. As soon as we have an update we will post it for you.
The reason for the sudden upward movement in the uranium stocks sector would appear to be on the back of the further problems at Cameco’s Cigar Lake project which to us appears to be suffering from some slippage to their recovery schedule. It goes without saying that without this project there is a vacuum to be filled by other uranium suppliers, so the rest of the market benefits from Cameco’s troubles.
It will be interesting to see if there is a domino effect on the spot price for uranium over the next few days or weeks. And that reminds me; there was an auction on the 10th July and we still have not heard the results! In general though the spot price is being reported on, as under some pressure so maybe we should expect a fall of a few dollars.