NYSEAM:UEC - Post by User
Post by
GSTbay1060on Aug 13, 2023 10:58am
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Post# 35585933
Uranium bear case
Uranium bear case Uranium is at a very interesting stage. On twitter we are starting to see the Lamborghini pictures and very flamboyant posts..
Here is what I can see as the bear case for Uranium. Interest rates rise further and stall out the market in the short term.. Causing a modest rescission. Many will panic and the broader market will sell off.. This may take the Uranium sector lower... I see SWU dropping to $136 from $160.. This may mean we are not overfeeding as much as what has been reported.. But the sector still may be overfeeding because SWU is still high… Which would mean, still, no secondary supply coming from enrichers but less demand for yellowcake ???? MAYBE??? for the short term...
I do believe that the commodity has out performed the miners so that is one reason we are seeing an uptick in the stocks.. Also fear may be creeping into the shorts??? BUT for retail investors the only metric we have is the spot price..
With all of the positive news I remain cautiously optimistic.. I will be optimistic when the spot price has some big moves , eg.. $1 or $1.4 in a day... That may happen later this fall when fuel buyers are back in the market??? So Monday ANYTHING CAN HAPPEN!!!!
Hold on to your hats, it MAY get VERY interesting???
Glta
DYODD