Technical Chart of the Week
Keep an eye on a Uranium player that I feel will be a takeover target. The most likely suitor is Cameco and Cameco recently said the stock was too expensive. Kind of like the strategy I use when I go shopping for a new car - I tell the salesman the price is to expensive...
Technically, Palladin Energy is trading at oversold conditions. RSI is in oversold territory at 21 and price action is down at a support level that has been tested before.
Uranium spot prices are holding in and around $42 a pound and long term contract prices are holding at $62.
I would not be surprised to see Palladin make an excursion to a price point over $4 again. From current levels, this could be a nice little pop for nimble traders.
