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Uranium Energy Corp. (AMEX: UEC) – The Bulls Are Back!

Uranium Energy Corpration (UEC) has had a rough past couple weeks from a technical analysis viewpoint. The stock price has been in a gradual downtrend since mid-July; however, the past three days have shown the bulls are back!

Link to Annotated Chart –

The key event that has occurred in the past three days is the breaking AND closing above $2.05. This price level was the previous low from mid-June (tan circle), and proved to be a very solid area of support (yellow box). When this level failed, the price sank all the way to $1.80 before the buyers began to step back in. This level turned into a crucial resistance level after falling (support levels become resistance levels when they do not hold). Since $1.80, the price has seen nothing but green and the best part is, the price managed to get back above $2.05! Icing on the cake comes in the form of the technical indicators still having plenty of room to run!

As can be seen with the light blue circles, the Full STO, MACD and MFI are all showing bullish movements. The Full STO is approaching the 50-line crossover (considered bullish), the MACD is crossing about its signal line (bullish), and the MFI’s are both coming out of ‘oversold’ territory. A stock is considered ‘overbought’ when it crosses above 80 on the MFI, and judging by where the MFI’s currently are, there is still lots of room to move before reaching that territory.

The green lines are the current support levels, and where there should be buyers waiting to scoop up some ‘cheapies’. The red lines represent the resistance levels. As each one of these is broken, it is a major victory for the bulls and will bring in more and more buyers as the chart becomes increasingly bullish.

With a strong break of $2.50, look for the 200 day simple moving average (200-SMA, orange line) to at least be tested.

Overall, the past three days have brought about a breath of fresh air for the chart, and as the majority of traders and chartists would say, “BOUNCE BABY BOUNCE!!!”

Let us hear your thoughts: Uranium Energy Corp. Message Board

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