The Rise of Uranium: A Prelude to Profit
Traders on Wall Street have long heeded the wisdom encapsulated in the adage “the longer the base, the higher in space.” According to this market tenet, when a price remains consolidated within a range for an extended period (forming a base), the subsequent breakout tends to be potent. Breakouts to new highs signal the overcoming of previous resistance levels, paving the way for upward movement devoid of significant selling pressure from past price points. This newfound momentum in the trajectory of Uranium, exemplified by the URNM ETF breaking out of a long-standing base structure dating back to late 2021, and individual companies like CCJ surging alongside their 10-week moving averages, indicates that bulls are now firmly in the driver’s seat.
Image Source: TradingView
Global Efforts to Combat Climate Change
Irrespective of one’s political leanings, it is paramount for astute investors to acknowledge the actions of world governments. Nearly 200 nations have signed the Paris Climate Accord, a landmark pact designed to curtail global warming by fostering voluntary commitments to slash greenhouse gas emissions.
Rising Energy Demand on the Horizon
Over the past three decades, energy consumption has witnessed a substantial surge, embracing diverse sources like petroleum, natural gas, coal, renewables, and nuclear power. Projections by the U.S. Energy Information Administration (EIA) indicate a potential increase in primary energy usage ranging from 16% to 57% by 2050.
Image Source: EIA
This surge is driven by the rising global living standards and factors such as the expansion of AI. As tech behemoths like MSFT, NVDA, and others vie for AI dominance, the construction of energy-intensive data centers is imperative.
Nuclear Power: A Sustainable Solution
The amalgamation of escalating energy demands and the imperative to reduce greenhouse gas emissions has positioned Uranium as a pivotal player in the battle against climate change, primarily through its utilization in nuclear power generation. Nuclear power plants offer a means to generate electricity sans the emission of greenhouse gases like carbon dioxide. By providing a dependable source of baseload power, nuclear energy complements intermittent renewable sources such as wind and solar.
The Future Looks Radiant
With governments worldwide striving to slash greenhouse gas emissions amidst a surge in energy consumption, the stage is set for the ascendancy of Uranium bulls.
Zacks Unveils “Top Stock Set to Soar”
Handpicked by five Zacks experts, a hidden gem in the realm of chemical companies has surged by 65% over the past year, boasting unparalleled potential. With soaring 2022 earnings estimates, sustained demand, and a whopping $1.5 billion earmarked for share repurchases, retail investors have a golden opportunity to jump on board.
This company’s growth trajectory could rival or even surpass recent Zacks’ high-flyers like Boston Beer Company, which skyrocketed by +143.0% in just over nine months, and NVIDIA, which delivered a stellar +175.9% over a year.
Unlock: Discover Our Prime Stock Pick & Its Top Contenders >>
Cameco Corporation (CCJ) : Complimentary Stock Analysis Report
Sprott Uranium Miners ETF (URNM): Dive into the ETF Research
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The perspectives articulated here are those of the author’s and do not necessarily reflect the views of Nasdaq, Inc.
