URRE Update

The last time we looked at URRE (last week?) I said to watch the trend not so much the day to day and look for a rounding type bottom in prices. URRE continues to shape up and reminds me of several different situations from the past.

 First the descending (bullish) wedge which is quite big. The rule of thumb is "Wedges retrace their base", that would give URRE a price pattern implied target of $3.50 or so. I've seen these really long wedges play out with positive divergences and keep moving lower, surprisingly they moved to their implied target, it happened in the $USD and American airlines. The break below the wedge trendline on heavy volume confirms the trendline as being real. The breakout from the apex of the wedge is what traders expect so we expect that to initially fail as it did.  For the last year or two, this has been the pattern, the wedge, the breakout that sucks the longs in and fails and then lateral base building. The yellow area is where the base seems to be coming together, although I suspect there's been accumulation since long before that.

 This is the rounding I said to watch for, it would be nice to see volume start to pick up as well, but in general it's a quiet time for URRE and they won't do much to attract attention until URRE is ready for stage 2 mark up.

 Recent 15 min accumulation

Two types of accumulation, the first on a capitulation move which works and doesn't arouse suspicions because someone needs to take the other side of the sell orders. The second is the more common lateral/quiet accumulation.

In any case, URRE is worth keeping an eye on, it is definitely shaping up.