URRE Update (long trade)

As I was writing the last post, I had an alert pop for URRE, the last update was yesterday as URRE continues to look better ever since we noticed the early changes in character before it started moving up.

 Yesterday I went through the details of the descending wedge and the new rules that you won't find in a technical analysis textbook, you can check yesterday's update for those details, just suffice it to say, we saw the false breakout at the yellow arrow and then the base in the white box, URRE is doing what it should be doing.

 Yesterday I pointed out this bullish ascending triangle consolidation and volume surging, today we may get a breakout or it may come next week, but URRE is on the right track. Also note the rounding bottom (see the moving average), this is exactly what we wanted to see even before we saw it taking shape. The trendline around $1.50 should be the stage 2 breakout to the mark up phase in which the stock trends better, it's also the easy money stage and where about 80% of the gains can be captured as the bottom 10% (base) and top 10% (top) are the areas of increased volatility and choppiness, so if you haven't looked at URRE as a long, there's still plenty of profit potential, you didn't miss the bus.

 ATR has increased by 20% just in the last couple of week and in side a consolidation! The Trend Channel stop is around $.90 but for the potential this trade has, I wouldn't mind having an even wider stop.

 Short term, there was accumulation yesterday from 1 p.m. through the close

 You can see it on the 5 min chart as well, but what is nice about all of these charts is that 3C is moving with price, which is confirmation.

 You can see it here too on the 30 min

And on the 60 min.

The long term daily chart is what shows the real potential for URRE...

That's a strong daily divergence and a nice size base that should support a nice trend up. Although the initial target it $3.50, I wouldn't be surprised if this was a 500-600% mover.

Patience with this trade has paid off and I think continued patience will pa off even bigger in the future, it's one of the few long trades that shows real long term potential for a nice trend.