A depressed sector uranium, which is in a major downtrend. Could there be an opportunity in this sector with the bullish seasonality fast approaching ? I guess there may be, subject to which trading system/method is in use.
I will only touch base to the daily chart, from a point of view of trading, taking a short term(days) view. A support of 15 cents was broken (05/10) to see the price action reverse above it, following day (06/10). I have highlighted that level with Yellow.
If the sellers were in control and committed, as well as being keen, expectation would have been a follow through. Lack of it, and immediate price action reversal above the breakdown level of 15 cents had occured.I treat this as a potential Wykckoff Spring or Shakeout or Bear Trap. Danger point which I want to see hold is 14.5 cents. A good enough reason ( reversal after a breakdown) for me to put the trade on and observe the danger point as my stop.
Disclosure : PDN.ASX held.
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