What will take to get to next big leg up?.
From a weekly perspective AEE remained flat on 14. Volume wise no signals.
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So what is happening in U sector/stocks? Last week I had written that CCJ needs to hold this level around 20% drop. The level around 50 or so. This whole week its playing around 48/50 level. There is something positive, and something negative about it. Positive is, the more it plays here, consolidates, but holds the level and does not drop below 45, the odds of making a new low of this phase around current levels increases. Also, as long as it holds here, many U stocks get a boost that we not going down. It helps the stock price, not big, but at least others move in positive direction. This week the play was accordingly. The negative is, its very vulnerable around this zone. One bad day could turn out to big bad month or months. So needs to get out from here. Spot price has also stabilised in early 70s now. So no pressure from there. No boost due to a big jump, but the slide may have been arrested. Lets hope. CCJ after losing 50, has done 1 week. Usually, these technical plays could last 1 to 3 weeks. So lets see.
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So what is happening with AEE? Playing the macro. I felt it played usual. Nothing different from how it plays before. So nothing much to write. Follow the macro game here.
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So what may happen next week? I still believe in CCJ play. I know many question that. But the stock prices, the sector has moved very closely with CCJ. Also its the biggest U stock and can provide strong macro direction. It needs to hold 48/50, not go below 45, get above 55, then everything will be in up trend. Spot price above 80 would be a good start. These two events may provide the next big leg up. Will that happen? Lets hope so. Enjoy your weekend and all the best.
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