Reviewing UUU charts today, price is holding steady at $2.35. The MACD is positive to the signal line and is indicating a bullish signal as it is above zero, indicating underlying trends are turning higher. The RSI is currently at 70.71 which is considered overbought at this point. The stock is tradiing within its bollinger bands (the high end is around $2.50). The 20, 50 and 200 day MA respectively are $2.20, $2.15 and $2.30, which means the stock price has broken through these levels, indicating a positive signal and buyer interest.
Looking at the indicators, I see higher volatility on this stock. While the MACD is positive, the slope is decreasing, indicating a weakening on the upward momentum on the stock. With the RSI over 70, that confirms that the stock has gotten ahead of itself and may pullback a bit to be in line with the moving averages, perahps to around $2.20 before finding support.
Longer term, things appear to be more positive. Factors to watch are overall uranium demand, which will depend on countries such as China and India who have a number of nuclear reactors that generate electricity. Japanese demand could increase if the new LDP government there reverses its nuclear policy and restarts reactors. Another area to watch is Germany and what that country does after its September elections. As we all know, the Merkel Government shut down Germany's nuclear reactors in the wake of the Japanese tsunami, in part to appease a coalition partner. That policy could change depending on what happens in national elections in September.
All of the above factors could affect uranium demand and the spot price. If the stock price could hold at $2.20 and form a support base, we could see it take a run to $2.50 or even higher in the short term, with possibilities of over $3 by spring/summer if demand begins to increase.