Seasonal softness delays uranium buying window
The speakers argued that despite strong long-term fundamentals, tactical patience is warranted in uranium equities due to seasonal weakness and a lack of current accumulation.
The argument
The guest noted that uranium miners are entering their historically soft season, which typically lasts until the World Nuclear Association conference in late August. Technically, major equities and ETFs have failed to hold breakouts and are testing or trading below their 200-day moving averages, indicating a lack of immediate buying momentum.
The thesis, stress-tested
✓ What validates it
- ✓Uranium equities reclaiming and holding their 200-day moving averages
- ✓Increased buying volume and momentum starting in late August ahead of the WNA conference
▸ Risks discussed
- ▸A sudden spike in the uranium spot price could trigger an early breakout
- ▸Holding existing positions exposes investors to near-term seasonal downside
Hear it yourself
"Joining me now is Boxwood CEO, Morgan Downey, who's probably much better known as the author of Oil one zero one. For any listeners who are not familiar with that book, I guess, for most professional investors even, maybe if you're not in the oil market, you haven't heard of it. But if you are in the oil market, there's nobody who's anybody who didn't start their career reading Oil one zero one by Morgan Downey, which is a book that really goes from upstream to downstream and tells the whole story of how the energy market works from the logistics and the tankers all the way to futures trading. It's an amazing book."
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