URRE Pullback

As mentioned in my coverage of yesterday's market, URRE was set for  pullback.

"recently it looks like URRE will pullback, the last 2 days have seen small bodied price candles as well as falling volume, a pullback here would be normal and healthy for the bigger picture."


And Pullback URRE has today. Again, it is a pretty deep pullback, but the target area is still lower so I do not view this as a problem, but a future opportunity in the near term to pick up URRE at a low risk/ high probability entry. Last night's post, linked above, shows the long term bullish nature of URRE so I won't cover those charts again today.

 Here's the pullback today, so far the volume is moderate which is good. Friday and Monday both put in very small bodied candles, showing a loss of upside momentum and did it on lower volume (traders were not enthusiastically chasing prices higher at these levels, setting URRE up for a pullback as mentioned last night).

 My custom x-over screen, meant to avoid false/whiplash price moving average crossovers with the addition of a custom indicator and a total of 3 components that must agree, shows an earlier crossover in which price would have said, "go long" however the custom indicator and RSI both were disagreeing with the signal, but recently all 3 went long. It is extremely common for the first pullback after a long signal to head for the yellow 10-day moving average and we will be looking for accumulation as price nears the average. Subsequent pulbacks tend to be deeper, usually to the blue 22 day moving average. All 3 indications remain long.

 The 2 min 3C chart also showed URRE going from uptrend confirmation at the green arrow to profit taking at the red divergence, indicating a pullback to be a high probability.

Unlike the RIMM pullback, the 15 min chart in URRE is in line and not negative, suggesting again this is a run of the mill, ordinary, healthy pullback which should give us a nice opportunity to buy URRE at a discount for the next leg up, which should put URRE in stage 2 mark up or what I call "The easy money". Keep URRE on your radar/watch list.