Can AEE hold 15 level?
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From a weekly perspective, AEE moved from 15 to 15.5, a small gain. Usual volume
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So what is happening with AEE? Its playing weak. Its playing how other weak ASX U stocks are playing. Maybe slightly better. Its 52 week low is 10.5, so at 15.5, its close to 50%. Many ASX U stocks are within 20/30% of their lows.
There are three major factors in play- U macros - This is overall very bullish for all news and countries adopting etc, one weak spot - yes the Spot price after January high of 106 has been weak for the rest of the year
- ASX U play - ASX U stocks are now diverging from US play of U stocks. While CCJ/UEC etc are making new 52 week lows, most ASX U stocks are looking for cover. There is a big divergence now. I have provide numbers from last week that I wrote on ASX Li stock, to show how ASX U stocks are diverging, because a similar feature I am now seeing in ASX Li stocks. Not sure why ASX punters are playing so weak, so risk-averse.
- AEE Play - Playing how most ASX U stocks are playing. Nothing significant here.
A combination of above 3 means its playing weak. How long will it play weak? ASX U stocks have to close the divergence to plays of CCJ/UEC. And hope that they continue to hold or rise. CCJ/UEC are doing their job, but ASX U stocks are not moving, maybe the risk appetite of ASX punters is different, and they may be more risk-averse, at least at this stage. That sentiment has to change. Till then we wait.
From numbers perspective, AEE needs to hold 14.5. Else early 12 may come into play. Upside, cross 18, and stay above that. Uncertain - keep playing 14/18
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This is what I wrote last week on Li stock, so numbers are week old.
Table - Share Price movement of Uranium stocks in last 3 months.
. So what may happen next week? A very concerning play happening now in ASX arena. ASX U stocks are already suffering big time due to this divergence. CCJ has made new highs. What happens if it decides to consolidate? Already suffering ASX U stocks - how will they react? Don't know. Its an unusual play. I have not seen this before. I am trying mostly out for now before I get a hang of what's happening. I hope this divergence is closed and ASX U stocks have the good rise they deserve. Will that happen? Lets hope so. Enjoy your weekend, and all the best.
(20min delay)