SIA Chartsā relative strength rankings help investors identify opportunities in sectors where money flow trends are changing. As such, the Uranium sector seems to have re-gained its luster as an area that is showing outperformance of late.
Today, we are going to highlight uranium and rare earth miner, Energy Fuels Inc (EFR.TO), which has been climbing back up the relative strength rankings in the SIA S&P/TSX Composite Index Report since the spring, including an 81-position jump over the past month and 82 spots in the last quarter. On July 10, the shares re-entered the Favored Zone of the SIA S&P/TSX Composite Index report at a price of $8.90 and, after Fridayās close, the shares are at $13.70 representing a 54% price increase in just a few short weeks representing the power of SIAās AI Relative strength system.
Signs of renewed accumulation continue to emerge in Energy Fuels (EFR.TO) shares. An uptrend since April has been emerging and has accelerated in recent days. Last week, EFR.TO established a new 52-week high when the shares broke above the $11.75 area which the shares have not seen since the Autumn of 2023. The move is looking parabolic in nature but in looking at the last weekly candlestick, we see a bullish candle which is characterized by a single candlestick pattern that forms when the closing prices are at or near the high of the weekly session, with a long lower shadow and little to no upper shadow.
This trading action is positive, with the shares briefly trading towards the lower end of the candlestick only to have the buyers step in and drive the price action back to the upper end of the candlestick. Also positive to note is the spike in volume the shares experienced in the candlestick from 2 weeks ago when the shares gained almost $4/share indicating strong buyer behaviour. In looking at the longer view, it is quickly approaching its 5-year high at approximately $14.00 which the shares were at back in November 2021. There doesnāt seem to much resistance along the way until the $14.00 handle.
Letās dive in and see what the Point and Figure Chart looks like today. Point and figure charting excels in identifying more precise support and resistance points when the recent trend is rather parabolic in nature. In looking at the Point and Figure chart, the shares are right at upcoming resistance at the $13.77 to $14.05 area so this is the price point to keep an eye on to see if they can break above this level. With such a strong move of late with the shares in a rising column of Xās lasting 25 boxes it is more important to see if we can identify support levels to the downside if the shares want to pause and digest its massive gains. Currently, the first level of support is at its 3-box reversal of $12.47. Below that, next support is at $10.86, then below that at $10.03.
The shares currently exhibit a bullish Double Top Pattern and with an SMAX score of a perfect 10 out of 10, the shares are exhibiting very strong near-term strength against the asset classes along with a positive Sector backdrop as the broader Metals and Mining category is listed as a favored sector in the SIA Stock Sectors report.
Energy Fuels is the largest uranium producer in the U.S. and holds more production capacity and uranium resources than any other U.S. producer. The Company also produces vanadium. Headquartered in Colorado Energy Fuels holds three of Americas key uranium production centers: the White Mesa Mill in Utah the Nichols Ranch ISR Facility in Wyoming and the Alta Mesa ISR Facility in Texas.
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