Uranium stocks have been rising back up the rankings in the S&P/TSX Composite Index Report lately. In the last week, explorer Nexgen Energy has soared up from the red zone to the Green Favored Zone, rising 103 places in the last week to 14th place including a rise of 7 spots yesterday.
Last month, Nexgen Energy (NXE.TO) successfully retested $4.50, establishing the bottom of a sideways consolidation range, and confirming a higher low that kept their longer-term uptrend intact. Since then, the shares have come under renewed accumulation, and yesterday they blasted through their June peak near $6.00 to a new all-time high, signaling that the recent pause has ended and a new upleg has commenced.
Based on a measured move from the recent $4.50 to $6.00 range, next potential upside resistance may emerge near $7.50. Initial support appears at recent breakout points near $6.00 and then $5.50.
Nexgen Energy (NXE.TO) has completed a consolidation phase and embarked on a new upleg. Building on an August Double Top upturn, the shares have broken out to a new all-time high this week, clearing their previous peak near $6.00 set back in June, and completing a bullish Spread Double Top pattern.
Based on vertical and horizontal counts, next potential upside resistance appears near $6.70, then $7.85. Initial support appears near $5.70 based on a 3-box reversal.
With a perfect SMAX score of 10, NXE.TO is exhibiting strength across the asset classes.
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