Key here is that there are a lot of recent new holders who are under water (represented by the high volumes in the horizontal bars in the green box), and who are currently getting squeezed out; I would add option exercisers to this group as well.
We can tell from the low-volume period in around the first half of October that 0.06 is where there are very few people willing to sell. The question is whether or not recent holders will sell into this area with strength.
Judging by the high volume and price action over the last few days, there is downward pressure, but buyers are also stepping in. Today's minor candle wick shows that 62 and 63 remain a good price to get a bargain, but the large body shows people are still selling or shorting into this area. There's a fight going on. The technical stops from the break of the upward trend line have comprised some of the selling the last few days as well. Note also that the downward break was on low volume; but volume have been significant the last two days, which tells me that there's significant dip buying but sellers are quite motivated as well (options? push down?)
This chart is weaker than other uranium charts (e.g. PDN, PEN, BOE), but since more people are getting squeezed out now, it would mean a rise would have a lot less people selling for breakeven or taken minor profits.
It's almost inevitable that the price will test 60. How price and volume reacts there will be key.
AGE Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held
