Energy Fuels $UUUU Bullish Option Flow On Russia Uranium Sanctions

  • Post category:Options Trading
  • Reading time:6 mins read
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Bullish option flow was detected in UUUU stock on March 11, 2022, after news circulated last week that the Democrats were considering sanctions against Russia state-owned Rosatom.

UUUU Stock Bullish Option Flow

Uuuu Option Flow

Make sure to review this lesson on option flow so that you understand the image above.

U.S. weighs sanctions on Russia’s state-owned Rosatom, Bloomberg says

On March 9, 2022, news circulated that the Biden’s administration is mulling imposing sanctions on Russian uranium supplier Rosatom, which could have major implications for domestic uranium mining and nuclear power operators, Bloomberg’s Ari Natter, Nick Wadhams, Saleha Mohsin, and Will Wade report, citing people familiar with the matter. Source: https://twitter.com/AriNatter/status/1501655345416052737

IperionX & Energy Fuels Progress Leading U.S. Rare Earth Collaboration

On March 8, 2022, Energy Fuels announced that they have undertaken laboratory evaluation of rare earth mineral concentrates from IperionX’s Titan Project in west Tennessee.

IperionX and Energy Fuels previously signed a memorandum of understanding for the supply of natural monazite sands from IperionX’s Titan Project in Tennessee to Energy Fuels’ White Mesa Mill in Utah (refer ASX announcement dated April 22, 2021). Energy Fuels and IperionX are continuing to evaluate expanding their collaboration to establish a fully integrated permanent rare earth magnet supply chain in the U.S.

Energy Fuels’ evaluation indicates that IperionX’s rare earth minerals are suitable as a high quality feedstock to produce a high purity mixed rare earth carbonate at Energy Fuels’ White Mesa Mill in Utah. Energy Fuels is currently producing a mixed rare earth carbonate at commercial scale at its mill. This commercial product is the most advanced rare earth material being produced in the U.S. today at scale. Energy Fuels also intends to construct solvent extraction (SX) rare earth separation infrastructure at its mill in the coming years, allowing the facility to produce separated rare earth oxides from high quality feedstocks like the rare earth concentrate expected to be produced from IperionX’s Titan Project. Energy Fuels has also made moves into the rare earth metal and alloy business.

Rare earth elements are used in many applications including battery alloys, catalysts, ceramics and metal alloys. However, it is the increasing demand for rare earths used in high strength permanent magnets found in power dense electric motors used in electric vehicles and wind turbines that makes up the majority of global consumption.

In particular, the heavy rare earths dysprosium and terbium are essential for the production of NdFeB magnets used in clean energy, military and high technology solutions. Establishing a U.S. heavy rare earth to magnet supply will be highly strategic and valuable to the country’s leading defense, EV and clean energy sectors.

Test work to date1 indicates that IperionX’s rare earth minerals contain a large amount of the light rare earths neodymium and praseodymium, as well as a significant distribution of the highly valuable heavy rare earths terbium and dysprosium. There is only minor production of dysprosium and terbium outside of China, and almost no production within the USA. Currently, almost all U.S. rare earth mineral production is processed overseas, primarily in China, which makes Energy Fuels’ current rare earth carbonate production, and future separated rare earth oxide production, and potential metal and alloy production, highly strategic.

The combination of IperionX’s heavy rare earth rich minerals in Tennessee and Energy Fuels’ operating processing facilities in Utah provides the potential to rapidly progress a fully integrated rare earth magnet supply chain in the U.S.

📺 Could uranium double from here?

Could uranium double from here?

📈 UUUU Stock Technical Analysis

Uuuu Stock

Both the short-term and long-term trends are positive. This is a very positive sign. UUUU is part of the Oil, Gas & Consumable Fuels industry. There are 402 other stocks in this industry. UUUU outperforms 73% of them. UUUU is currently trading in the upper part of its 52-week range. The market is still in the middle of its 52-week range, so UUUU slightly outperforms the market at the moment. Volume is considerably higher in the last couple of days, which is what you like to see during a strong move-up. Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

There is support at 6.74 from a trend line in the daily time frame. There is also support at 6.20 from a trend line in the weekly time frame. In addition, there is support at 5.96 from a trend line in the daily time frame. Finally, there is support at 5.26 from a trend line in the weekly time frame.

Although UUUU has an excellent technical rating, it does not offer a high-quality setup at the moment. UUUU stock has a Setup Rating of 3 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when UUUU stock consolidates and has a Setup Rating of 8 or higher.

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