Sunday, February 05, 2006

Feb 5 Uranium Stocks Update: Urasia Energy (CVE:UUU )

I profiled Urasia (UUU.V) as my first uranium mining stock pick and I am sticking with it. However, as I also got wind of Urasia's recent announcement of a $100 million financing plan at $2.55, I would advise people NOT to buy it right now. UUU closed over the weekend at 2.80 and will mostly likely fall back towards the $2.55-$2.60 level.


The 5-day EMA of UUU is about to merge with the 20-day EMA. The MACD is also moving in a negative direction. Momentum is against UUU right now, probably fueled by that financing announcement. I doubt, however, that the 50-day EMA will be breached. I advise potential UUU investors to wait until the 5-day EMA has finished its descent and recrosses the 20-day EMA with a positive MACD.

To reiterate, Urasia is a great uranium mining company with impressive people behind it, an operational mine, and a bright future. Its stock however, should be left alone, probably until financing is closed on February 21st.

 

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home