$UUUU: Uranium producer energy fuels provides an opportunity

Energy Fuels is the largest US miner of uranium. It produces uranium both in form of triuranium octoxide and uranium hexafluoride. Besides the core business, the secondary products of Energy Fuels are rare earth elements and vanadium. Founded in 2006, the company has its headquarters in Lakewood, Colorado. One can trade it under the ticker $UUUU at the New York Stock Exchange. Investors in shares of the mining company are participating, therefore, in the company success story on the one hand and in the price development of the uranium commodity on the other.

Currently, we see the ongoing price appreciation within the energy commodities like oil, gas, coal and others. Consequently, uranium is expected to turn higher after 13 years of weak prices as well. Besides the market correlation in the energy group, the pattern of $UUUU shows a turn higher after 13 years of depressed prices as well. We have discussed the impulsive bullish behavior in the initial article from March 2021. Now, investors in the energy sector obtain a second chance to enter the uranium mining industry while buying a pullback in the largest uranium mining company of US.

Energy fuels weekly Elliott Wave analysis 01.24.2022

The weekly chart below shows the Energy Fuels shares $UUUU traded at NYSE. First, the stock price has developed a cycle higher in black wave ((I)) of grand super cycle degree. It has printed the all-time highs on April 2007 at 240.61. From the highs, a correction lower in black wave ((II)) has unfolded as an Elliott wave zigzag pattern. It has printed an important bottom on March 2020 at 0.78.

From March 2020 lows, a new cycle in wave ((III)) has already started and should extend towards 240.61 highs and beyond. Then, the target for wave ((III)) will be towards 242.03-391.07 area and even higher.

Energy fuels daily Elliott Wave analysis 01.24.2022

The Daily chart below shows the $UUUU shares price action in more detail. The stock can be in the early stages of the blue wave (I) of the black wave ((III)). First, the cycle higher from March 2020 in red wave I of blue wave (I) has ended in November 2021 at 11.39 highs. From the peak, a correction in wave II is unfolding as a zigzag structure. After ending ((A)) and ((B)), it is currently within wave ((C)). The 3rd leg lower has been confirmed. Now, it can reach towards 4.81-1.97 area. There, buyers can enter the market for a rally in wave III or for a bounce in 3 waves as minimum. The target for wave III of (I) will be towards 11.39 highs and even higher.