This Low-Priced Speculative Stock Might Not Be Radioactive
You've likely never heard of this uranium name, but there's a reason I'm taking a look at it.
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Fission Uranium Corp. FCUUF is a small company and its stock trades for under a dollar.
So, why on earth would I want to discuss this name with Real Money Pro subscribers?
James Dines was a great analyst, in my opinion. He passed away in 2022 at the age of 90. People who may have read his newsletter or knew of his forecasts may remember him as one the great gold bugs.
In addition to recommending gold and silver over the years, Dines was also early in recognizing the bullish potential of rare-earth metals, pot, solar plays, and yes, uranium. One speculative stock he recommended before his passing was Fission Uranium Corp.
Let's check out the charts and indicators to see if they are still glowing bullish.
In the daily bar chart of FCUUF, below, I can see that the shares have turned higher from a low in late April. Prices have broken out on the upside Friday with a new high for the calendar year. FCUUF trades above the rising 50-day moving average line and above the slowly bottoming 200-day line.
The trading volume has increased since July and the On-Balance-Volume (OBV) line is slowly firming. The Moving Average Convergence Divergence (MACD) oscillator has been bullish since early August.
In the weekly Japanese candlestick of FCUUF, below, I see a positive-looking chart picture. If you look at the chart and imagine that the price levels are dollars and not pennies you would have a more positive opinion. The shares trade above the bottoming 40-week moving average line.
The weekly OBV line has a slight upwards trend since May. The MACD oscillator is bullish. A weekly close above $0.70 is likely to precipitate further gains.
In this first Point and Figure chart of FCUUF, below, I used daily data using a five-box reversal filter. This projects an upside price target in the $0.86 area.
In this second Point and Figure chart of FCUUF, below, I used weekly price data with a five-box reversal filter, which projects a target in the $1.87 area.
Bottom-line strategy: Yes, Fission Uranium is a low-priced speculative name so you need to treat it like taking a new drug for the first time -- you need to read about all the side effects, e.g. losing money. But if you have some risk capital and want to get some exposure to uranium this may be one idea.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider FCUUF to be small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
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