This Uranium Stock is on the Verge of a Big Move
NexGen Energy (NXE.TO) is a widely followed and talked about uranium explorer with a portfolio of “high-impact” uranium projects across the Athabasca Basin. Since charging higher during March and April NXE has spent the last five months oscillating, and churning a great deal of volume, between C$2.00 and C$2.80:
Moreover, during the last three months NXE has drifted lower on relatively low volume which has led to the current situation in which the stock is on the verge of what could be a major breakdown from a multi-month topping pattern. Below C$2.10 NXE would target a move down to the March consolidation area near C$1.50. While the recent trend is certainly lower and there are mounting signs of distribution (higher volume down days), it wouldn’t take much for the bulls to turn the tables; a breakout above ~C$2.40 would set the stage for an upside resolution to the recent range and a rally to new all-time highs.
Right now the odds favor a downside resolution, however, NXE could absolutely resolve in either direction and offer ample trading opportunities regardless of which direction the ultimate resolution occurs.
DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. The author has no position in NXE shares at the time of writing and no intention to initiate a position, either long or short, in the next 72 hours. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher ofEnergyandGold.com. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.comfor important risk disclosures. It’s your money and your responsibility.