URRE Update

URRE is another possible secular long like UNG, although I like UNG a lot more at this point, I do think URRE should be on the radar.

On Jan. 10th we had a chance to take some profits out of URRE and it was giving signals that it was about to reverse and at least pullback; hopefully you were able to take some $ from URRE and we want to watch the pullback to see if there's an opportunity to be a buyer of URRE again.

Here are the current charts.

 Here's the typical failed descending wedge (all wedges both bullish and bearish were failing then as Technical traders were whipped pout of positions). We noticed the bullish wedges like this, instead of breaking out, went on to form bases and the bearish wedges didn't break down, but formed longer term tops.

 Here's the 10th when we last posted about taking action in URRE, so far the daily candles have been smaller and smaller, I'd watch this one near the close and see if there's a bullish reversal like a doji, hammer or star and also watch for volume to be higher than yesterday's. My gut feeling is that this will be more of a process reversal to the upside than an event so I'd expect some more lateral movement or "U" shaped.

 This is a 3 day X-Over Screen which is appropriate for URRE, it's giving 1 of 3 long signals and the other two are moving in the right direction, this would be a long term long signal, not just a trade.

 As far as near term, the $.44 level or actually just above it is what we want to be watching, we may get a pop above and back down to make a lateral range, but I do think there will be a chance to buy URRE at a good price with low risk.

 The long term case is much easier to make, take a look at this daily Money Stream chart with a huge leading positive divergence. Like UNG, I'd prefer to look at URE as a longer term trade, but because of the price, it's hard not to trade around shorter term signals like the last one.

 The daily 3C chart is also leading positive. You might decide how you want to treat this position, like UNG (long term and just put it away or more active management).

So far since distribution in to the highs of the 10th, we are just getting the start of a positive divergence, this doesn't mean URRE is a buy, it means that it seems someone is spending some money to buy the pullback which is good for a future long trade, I don't think there's a strong enough signal yet to be a buyer, but I would watch the daily candle near the close, that might change my mind, at least for a short term trade.