As with almost all uranium stocks Energy Fuels (T-EFR) has had a rough ride since hitting its high last April. After an 86% decline EFR may have finally bottomed in early February and has rallied 100% in the past few weeks. Now what?
For a starter the momentum indicator has shown a positive divergence versus the August lows BUT the volume indicator continued to confirm the stock move to lower levels. On the positive side the price is now above its positive sloping moving average line and the momentum indicator has moved into its positive zone, above its positive trigger line. Despite the still weak volume action, the volume indicator has moved above its trigger line and the line has turned upward. There is that resistance level at the $1.70 price so I would be inclined to wait for the resistance to be breached with a close at $1.75 or higher before acting. That extra little cautionary action may be well worth the slight loss of potential profits. The short and intermediate term ratings are POS (BULLISH) but the overall Index is still holding back and this continues to be a concern. One chooses one’s risk level and goes with it. For a stop loss at this time I would be inclined to go with the short term moving average line slope. One can use a simple 10 DMA.
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