In the April 8th issue of Equity Leaders Weekly, we mentioned that the price of uranium was starting to climb, and yesterday we saw this commodity price recovery translate over into gains for uranium stocks such as Nexgen Energy (NXE.TO). Nexgen, which was recently added to the SIA S&P/TSX Composite Index Report, continued to bounce back from a quick dip into the yellow zone and climb within the Green Favored Zone, moving up 30 spots to 6th place as the shares jumped 12.5%.
Nexgen Energy (NXE.TO) staged a major breakout yesterday, blasting through the top of a $4.00 to $5.50 sideways channel which had been in place since February, ending a consolidation phase and signaling the start of a new advance.
Measured moves from the recent trading range suggest next the next potential upside resistance zone appears in the $6.75 to $7.00 area. Initial support moves up to the $5.50 breakout point from $5.25.
Last month, Nexgen Energy (NXE.TO) shares broke out over $5.20, ending a consolidation phase by completing a bullish Spread Triple Top pattern. This month, the shares have confirmed the start of a new advance with a breakout over $5.40 to a new all-time high, completing a bullish Double Top pattern. Horizontal and vertical counts suggest that next upside resistance on trend may potentially appear near $6.32, $6.84, $7.55 and $7.86. Initial support appears near $5.20 based on a 3-box reversal. With its bullish SMAX increasing to 8, NXE.TO is exhibiting near-term strength against the asset classes.
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