You know, were it just Uranium Resources, Inc. (NASDAQ:URRE) or just Ur-Energy Inc. (NYSEMKT:URG) or just Uranerz Energy Corp. (NYSEMKT:URZ) making a decided bullish move, I might be able to dismiss it. Similarly, if URZ had only been moving higher for one or two days (or only URG or only URRE), it might be easy to not be impressed. Neither of those situations has been the actual case, however. All three stocks have been moving upward for several days now, quite a bit, on noticeably higher volume. There's something "going on", as it were, and if prior group-wide movements are any clue, it's the kind of move worth tapping into.
The reason Ur-Energy, Uranium Resources, and Uranerz Energy are headed higher? That's just it - there is no real, definable reason. Back on the 11th a relatively obscure analyst from a relatively obscure research firm suggested uranium prices would be steady over the coming decade, which is certainly good news for URRE, URG, and URZ shareholders. But, it's not earth-shattering. Ur-Energy and Uranerz Energy as well as Uranium Resources all reported last quarter's earnings within the past three weeks, which likely had something to do with the new-found strength; some positive comments to go along with Q3's numbers clearly didn't hurt. But, even a good quarter from the whole group isn't apt to move the needle a great deal for a market that's savvy regarding uranium's prospects.
No, the ultimate conclusion here is that URZ, URRE, and URG - along with most of their peers - are consistently fighting their way higher now because there's a broad, bullish undertow favoring the entire industry. Given how these paradigm shifts tend to last a while (as in weeks, if not months), the clue to glean from the aggregate bullishness is the face-value clue... get in now while the gettin's good.
And make no mistake - all of these stocks are doing something new and compelling. Take a look at the chart of Uranerz Energy Corp. as an example. It's admittedly the weakest of the three, not having participated in the rally a few weeks ago when the others started to perk up. But, URZ is working to make up for lost time, soaring the past couple of trading days on remarkably higher volume. If the 100-day moving average line (gray) could just get out of the way, this one could be a real winner.
Uranium Resources, Inc. is an even better looking setup, having crossed above (back above) all of its key moving average within the past couple of weeks on a couple of strong-volume days. Yes, this is the second time URRE has made a breakout effort this year. But, the one from July should hardly count. The wildly-strong surge then was never built to last. This time the pace of the rally is measured and sustainable. And, all the moving averages are close to upward slopes after months of downward slopes. That alone is a sign of the changing bullish undertow.
The best looking chart - and the best trading opportunity - in the bunch, however, has to be Ur-Energy Inc. It actually started its rebound in April, but confirmed it in September and October with the pullback to, and subsequent push off of, the 200-day moving average line (green)... which is already inclining, by the way. In fact, URG has already logged a higher low and a higher high since the last major bottom in late-2012. So, there's no denying there's a new uptrend underway here. The lull from a couple of months ago has just given us a window of opportunity to wade in.
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Bottom line? When the participation rate is this solid in a rally that's this well developed, take the hint - there's a mob forming, and they're going to take these stocks for a trade-worthy ride. Start with URG.
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