Wednesday, December 3, 2008 at 07:07PM
Whilst the majority of uranium stocks, and in fact most stocks across the board, appear to be fizzling away in recent month, Uranium Participation appears to be challenging with this recent rally, perhaps indicating a slight change in sentiment towards the sector.
Uranium Participation has rallied from below $5 to above $7 in just two months, a gain of over 40%. Meanwhile other uranium stocks, such as those in mining and exploration, have been making lower lows. The Relative Strength Index (RSI) is also moving higher, which is a sign of growing strength in the stock.
Perhaps there is some hope in this rally, as U.TO gets pushed higher by the uranium spot price rising to $55/lb during the last two months. This could be a sign that things are getting better, or at least are taking a pause from getting worse, in the uranium sector, and that we could be moving closer to a turnaround.
For those not familiar with this stock, Uranium Participation is a fund which holds physical uranium, thereby by purchasing shares in the company, one gains exposure to fluctuations in the uranium price.
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