The Uranium ETF Is Close To A Major Breakdown After Last Week’s Plunge

From Taki Tsaklanos: The uranium space is creating suspension among investors. The most popular uranium mining ETF, URA, dropped 4.6 percent last week. With that, it breached a major support level, and that could become major news.

InvestingHaven has written repeatedly about the importance of 15 points in URA:

Uranium miners URA: What happens at $15 has huge implications

Uranium miners falling sharply, major test ongoing

Uranium miners: Strong fight between bulls and bears in March 2017

The key point is clear: uranium miners are bullish as long as URA remains above 15 points.

Interestingly, the importance of 15 points is not only visible in terms of URA’s chart structure it also has importance from a Fibonacci retracement point of view. According to InvestingHaven, Fibonacci retracments are certainly not a leading indicator, but it rather has a secondary importance (or even lower). In this case, however, the Fibonnaci retracement level has exactly the same outcome as our chart perspective. In other words, it is another confirmation, from a different angle, of the decisive value of 15 points in URA.

URA has fallen rather sharp in February and March. However, the decline is losing steam now. There is a probability that the decline stops at this point.

Uranium mining bulls really want to see current no break below current price levels. Although uranium miners are still bullish at this point, as they are just 2 percent below 15 points, it is absolutely mandatory that the decline stops right here.

The coming weeks will be decisive for the uranium space.

uranium miners URA bullish

The Global X Uranium ETF (NYSE:URA) closed at $14.66 on Friday, down $-0.13 (-0.88%). Year-to-date, URA has gained 13.91%, versus a 4.95% rise in the benchmark S&P 500 index during the same period.

URA currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #64 of 126 ETFs in the Commodity ETFs category.

This article is brought to you courtesy of Investing Haven.

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