This caught my eye a while ago but I only just decided to put a...

This caught my eye a while ago but I only just decided to put a post up on this.

Keep in mind I am almost purely a TA guy, not an FA guy. Nonetheless, I have dug into ERA a little bit.

ERA has taken a walloping over the past few years after not only the uranium price collapse, but also after the Ranger deeps project was put o ice. Not sure when any of that was, but I see here is a nice trend line that has formed under the last previous two price pops. I cant get the uranium price to overlay here, but what I have got in the background is the URA Global X Uranium Index in yellow in the background. I find it a good match to whats happening with ERA. There are three price pops, of which only two show up on ERA. Along with this I've put in the volume pops on ERA that match up with the ERA chart (I screwed up drawing them in but you can use your imagination).

I've gone and drawn in  a bit of a repeat of the pops to and a pink circle indicating when the next pop is roughly due. Now aside from the lower trend line there is no middle or upper trend line to speak of so I am using the 200MA to guide the action. meaning that any cross below it, provided it does not cross below the lower trend line is a march forward and upward. The next pop will be an important one if we see it. If it is equal to or greater than the last pop then that is a very good sign. If it can only muster up the strength to get to the first pp then I think there may be some reassessment due.

ERA is as speculative as they come, but the payoff here could be tremendous as given it is an operating mine, to get this show up and running again is minimal as it is already an operating mine under care and maintenance that is just chugging along through its ore to cover its mining costs until the price picks up again (keeping in mind of course this would have to be up there as one of the most controversial mines in Australia).