DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Cestrian Capital Research, Inc., its employees, agents or affiliates, including the author of this note, or related persons, may have a position in any stocks, security, or financial instrument referenced in this note. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice. Companies referenced in this note or their employees or affiliates may be customers of Cestrian Capital Research, Inc. Cestrian Capital Research, Inc. values both its independence and transparency and does not believe that this presents a material potential conflict of interest or impacts the content of its research or publications.
Warming Up
$URNM corrected a little harder than we expected in our note of January 10 (“238 Reasons To Follow Sentiment”). It cooled further, falling below that 0.618 retracement level of a little under $70, and thus far instead found support at around the next leg down, the 0.786 retracement, which is in the $61 range. No matter. The logic of our note - uranium becoming an increasingly strategic resource, the uranium market becoming more financialized, and producers acting let’s call it rationally as regards supply levels - remains. So we remain long $URNM in staff personal accounts and bullish on the name in this service.
Update chart and price target follows below, together with suggested stop placements to protect your downside and automate any profit-taking on the upside.