In our uranium outlook 2018 we said we are bullish on the uranium market, and concluded with this quote:

The main factor at this point is the Uranium spot price as that’s what’s going to dictate the next direction in the Uranium sector. We believe the tide might be turning for Uranium price and for Uranium miners as the cuts we are seeing now in production along with the potential new reactors coming online will force a change.

Moreover, we indicated that our top pick remains UEC.

Very recently, we indicated that uranium stocks in 2018 are a pressure cooker which is ready to explode. That article got followed by the Uranium Market Breaking Out, Looking Very Bullish update.

Guess what, uranium spot prices started rising very recently. Moreover, this happens after a double test of a multi-decade bottom which, coincidentally, marked the top of uranium spot in 1996 (before the mega bull run started in 2004). The two circles on the chart make our point.

As we correctly indicated in our uranium outlook for 2018 that uranium spot will provide the final GO for the uranium sector to take off, we are delighted to see a rising uranium spot price. Combined with seasonal strength in the uranium market (as detailed in our outlook) it makes for a perfect for the uranium market to engage in a secular breakout which turns the long term bear market into a newly born bull market.

Uranium miners are breaking out as 2018 kicks off

We have for a long time indicated that URA ETF has a critical price point: 15 points. After a triple bottom (higher lows) it seems that 15 points in URA is now cleared to the upside. This paves the way for a run towards 25 points.

We pay special attention to uranium stock UEC. Not only because we indicated recently that Uranium Energy Corp (UEC) stock price looks explosive going into 2018, but more so because we consider this stock the leading indicator for the uranium sector as explained many months ago.