URRE Update

Here's a trade that some members made some $ on and it looks to be setting up again. One thing is for sure, the mining sector, whether it be metallic or non-metallic has not performed well lately, which explains URRE's recent performance. This is a Cats and Dogs or speculative trade, it can move 200% in a few weeks and it does have a larger price pattern implied long term target of over $3.50, so it has a lot of room, a lot of opportunities, but risk management must take in to account the volatile and speculative nature of these high flyer trades.

 Just like PEX, the 3C daily positive divergence is VERY strong and implies a LOT of accumulation. Unlike PEIX, stochastics is not overbought and moving loser to an oversold level which makes me more comfortable.  I see a clear set up for a trade here, so you may want to set alerts (if you need charting software that will allow you to do so, email me).

 Here on the daily, I am pointing out it is in the Industrial metals and minerals sub-sector, which has faced pressure recently throughout the sub and main sectors. There is a VERY clear line of support (formerly)/resistance (currently) and at a perfect whole number, $1.00 which is almost sure to be where stops and limit buy orders will or have congregated as the human mind just naturally and subconsciously gravitates toward whole numbers (think about why items are priced at $.99 rather then $1.00), it's a well known fact in retail and in the market. In green you see support, in red resistance. The volume/price pattern is similar to a bull flag, which is a continuation pattern, meaning to continue the move up.

 3C is much more productive here then in PEIX, the hourly chart shows the top and accumulation both before the move and currently, note that current accumulation pretty much started when price broke below the $1.00 mark and there's a reason for that, volume picked up as stops were triggered making it easy to accumulate in bulk without reveling themselves as they simply took the other side of the trade.

 The 15 min chart also shows the major points of interest and confirms accumulation below $1.00

 Even the 10 min chart is productive.

 As well as the 5 minute.

While URRE could probably be bought in the area, my ideal trade set up would take my Trend Chanel in to consideration, the red areas are stops, both long and short trade stops and currently to break the downtrend, price needs to cross above the top of the channel in white, which happens to be at the $1.00 mark. Any move above that area and on volume  would be a trade worth a shot in my view and you might just make a double in a week or two. I would also consider this to be a speculative trade and be on top of your risk management. We take what the market offers and if the market offers a speculative high flyer, then so be it, but make sure you keep that risk management your priority. URRE will offer more then 1 chance, but you need to keep your dry powder for the opportunities, not let a trade drag you down for months.

I would absolutely set alerts and keep URRE on the radar.