Q: Hi 5i Team,
Uranium stocks and the underlying price of uranium seems to have potentially bottomed. What you be a buyer of uranium stocks at this time or do you think it would be better to hold off and wait for a position?
Thanks as always,
Jon
Uranium stocks and the underlying price of uranium seems to have potentially bottomed. What you be a buyer of uranium stocks at this time or do you think it would be better to hold off and wait for a position?
Thanks as always,
Jon
5i Research Answer:
From a technical standpoint, uranium does seem to have bounced off a low, and it's possible that was a 'bottom'. Most are aware of the long-term demand for uranium, but fundamentally it can be challenging to discern if spot uranium has found a bottom in the near-term. We think that price-wise, if it can make a 'higher high', this could be a positive indicator that the downtrend from early 2024 could be reversing. For U.UN, we would like to see price rise above $22 in order for this to take place.
We think that buyers can be patient as the downtrend has been persistent since early last year, and timing the bottom can be challenging.