Then we will practice discipline.. First the fundamentals and market motivators applicable:
Uracan has 40 million pounds Uranium NI 43-101 open pit low grade. This is solid.
Peers will have a hard time making a decent comparison when it comes to justifying their price at much higher levels... Uracan is speculatively way under valued for 40 million pounds uranium NI 43-101...
It appears Uracan has suffered and survived a consolidation during the recent closing .30 cent floor of the financing during tax selling. Charts and Level II show it clearly now...
Uracan is moving into the January effect undervalued. The January effect can have some powerful influence generating solid gains if strong fundamentals exist.
Uracan has no potential financing in the short term to undermine an overbought price... The price is oversold if looking at Stochastic.
Don't use StochRSI to make this determination. StochRSI only gives overbought, oversold, for RSI surfing the middle road. StochRSI is a dip picker on rising trends.
If we look at a long term chart back to 2007 we can see .30 cents is a resistance level that has been broken on two previous occasions which is very well positioned to act as a support level considering the recent financing and yearly timing and low price relative to the near term. Long term chart history is likely irrelevant.
Moving to a fill the chart setting which is more representative of today's fundamentals.... not being too concerned LONG TERM Looking back about anything other than identifying the resistance support level in step with today's Financing, January Effect and Tax Selling Market Motivators.
The float may give some concerns about a reverse split, but in this case my experience is, that the recent financing belays that concern for at least a year, and if you look at successful juniors moving into producers, reverse splits are not common with a NI 43-101... research on the probability of being a legitimate threshold for 40 million pounds low grade surface for a profitable uranium mine is quite impressive... If they had nothing but empty promises, I would be concerned. It will take some bleak news to go there (RS).
140 million shares fully diluted is workable and the warrants and options are priced higher and if news remains good they will be funding for real growth if the market motivators line up... there are numerous examples but that is for another time.
The only concern is where the warrant/options paper hits the price will be a slow down of price increase
The unanswered question is... Is the demand greater than the supply to make a trade now, and does anybody care? We are not bottom picking, as a bottom has already placed, what we are doing is double bottom picking a rising low.
We consider how much we can afford to lose and we set a mental stop of that amount, and if the price movement triggers this loss, then we implement a strategy of exit we have determined.
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