Although the daily chart for hot uranium play USU, first below, appears wildly parabolic and ripe to short, I would take a pass on fading it just yet. And the reason why I would not short it here is because of the 30-minute timeframe, second chart below, which shows an orderly base breakout several times over the past week. If you want to fade a parabolic move it is usually best to wait for signs of wild swings and sloppy action on the shorter-term timeframes, if at all. Nonetheless, the move has been spectacular and latecomer longs at this point for anything other than a quick daytrade could easily get punished, too.
Turning to a long and short idea, Men’s Wearhouse is a long idea if it can get back above $40. After the raspy voiced guy from the commercials was ousted from the company, the stock absorbed the news well. Note the tight consolidation above all moving averages in an uptrend. Still, I want to see that trigger.
And the short idea is one I charted last night–RH. I still would want to see that 50-day moving average breached to have me thinking a gap-fill. But so far I do not see eager buyers showing up to support the stock which has had a great run in the housing-related retail complex.
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thanks Chess. How does the rest of the sector look for uranium though ie. CCJ?
Thanks, eddy…Don’t see anything right now that is for me.
Chess…check out UNG,,,finally broke down with gas usage presumably exploding.
wow, will do post, thanks