One scenario is that it consolidates around current levels, and only pushes higher towards the end of 2019. We believe that uranium’s spot price has room to rise to $40 in 2019 though it may happen gradually. If uranium's spot price respects $28.50 it will be mildly to wildly bullish for uranium stocks in 2019. This, obviously, if if were to happen, would be very bullish for our uranium stocks forecast 2019. The monthly chart below must show at a minimum 3 more monthly closes above $28 in order to qualify as a confirmed breakout. On the one hand there is a break above the previous lows (summer 2014) on horizontal support, on the other hand there is a break above this 7 year falling triangle. Interestingly, this is a double breakout. More importantly, there is a breakout in the making right now. If we zoom in we see this rounding bottom on the 10 year chart. A recovery is a process, and it first needs a solid base before a powerful bull market can start. As always, a recovery does not happen overnight. What we learn from this historical uranium spot price chart is that the downside is very limited while the upside is significant. A rounding bottom which is now in the making for some 3 years is a very powerful bullish pattern. The historical chart over 30 years shows a bottoming formation. We will look at both the historical spot price chart as well as the futures chart. The charts of the uranium spot price looks very enticing. That’s the way we try to derive our uranium stocks forecast for 2019. We do so by looking at the uranium spot price chart, 3 different uranium stocks and seasonality. That’s why we have to develop a structured method to come to an educated uranium stocks forecast for 2019. That’s why we have to flash a warning at this point to take this intransparency into account. The drivers of the uranium spot price is almost a mystery, this market is quite intransparent. Moreover, the uranium spot price is the key driver for uranium stocks. ![]() ![]() ![]() Although we do not anticipate this we have to add this disclaimer. Needless to say, in a bad market scenario all uranium stocks will go down. One very important remark for our uranium stocks forecast for 2019 is of course the broader stock market, as well as this the Euro chart which will largely determine how current how global turmoil evolves.
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