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:


NXE.TO (Daily)


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.


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