Uranium price started to Boom, page-3000

After a very bad day on US stocks overnight, the ASX U stocks did not do too bad. The 13 stocks I track, there was a decline of 1.75%. Only AGE finished in positive territory.

The US Stocks were in green pre-market but had heavy decline right from market open. It looks like an analyst asked its corporate clients to reduce Cameco to one third they hold. This may have been the reason, but difficult to say as U sector is famous for its volatility. Otherwise all other factors are moving towards a gain.

There was a big gain in U future by $1.60 to finish on $47. this is from the gain on previous day of $1.70. So the U future price has gained $3.30 in just 2 days. $51 is now within the knocking distance.

AGE finished on 5.9, right on bang the number I have in mind for this stage. It looks like it has found a solid support at this level. Barring any catastrophic macro condition, there is a very high chance that this will be our new support and accumulation zone. If things move in the direction which it currently looks like, there is a good chance we may move towards our next level which for me is around 6.7c.

US stocks should rebound tonight. The sell off was a shocking scenario for any punters and defied common sense. Hopefully sanity prevails and it gains back the lost ground. It would be good to have a decent night on US stocks, as we take cue from them. A good night will mean a great start for us on Monday to continue on our journey to attack 6.7c. Lets see if we cross that next week. Enjoy your weekend and all the best.