Stalking The Uranium ETF For A Potential Buy
Morpheus Trading: With our market timing model remaining in “buy” mode, our current focus primarily remains on leading individual stocks.
Tesla ($TSLA), for example, is now showing an unrealized gain of 68% since our December 31 buy entry. SolarCity ($SCTY) is similarly up 56% since our December 19 buy entry.
However, despite strength in leadership stocks, we have also been noticing a stealth sector rotation of institutional funds flowing into various commodity ETFs.
One such ETF we are stalking for potential buy entry in the coming days is Global X ETF (NYSEARCA:URA), which is shown on the weekly chart below:
$URA blasted through the high of its prior trading range and 40-week moving average, on volume that was about 400% greater than average. High volume on a breakout is important because it confirms the presence of institutional accumulation.
Additionally, $URA closed near its high of the most recent week. The 10-week moving average crossed above the 40-week moving average as well, which signals a bullish reversal of trend is under way.