"Happy Christmas to both of you and your families, I am looking at ways to gain exposure to the Uranium play and came across Uranium Resources in the chart library, as the investment is through my SIPP the company needs to be UK based, the chart action looks a little extended but would I be right in thinking that its breaking out of the first step above the base? As I was taught at The Chart Seminar, many thanks."

Eoin Treacy's view Thank you for your well wishes and please let us reciprocate. I remember our conversations from some of the breaks at The Chart Seminar in 2009 and am glad to see you are putting the teaching material to practical use.

Uranium broke out of its base in November and continues to hold in the region of $60. A sustained move below the 200-day MA, currently near $50, would be required to begin to question medium-term upside potential.

I agree Uranium Resources completed a first step above its base just before Christmas and has improved on that performance considerably over the last week. While a little overbought in the short-term a clear downward dynamic would be required to check momentum beyond a brief pause. AIM listed Edenville Energy also has uranium interests in Tanzania and broke out of its base earlier this month.

Kalahari Minerals is also worthy of mention because it has a close relationship with Extract Resources and is outperforming that share. It found support in the region of 150p in October and continues to post new highs. A break of the short-term progression of higher reaction lows, currently near 220p would be required to question potential for additional upside.

North River Resources while not a pureplay on uranium also appear to be in the process of completing a base.


May all our readers have a Happy and Prosperous New Year.