The GX URA ETF, also known as the Global X Uranium ETF, is designed to reflect the performance of companies operating within the uranium industry. This ETF offers investors a diversified portfolio that includes firms engaged in uranium mining, exploration, and production on a global scale. As nuclear power is increasingly recognized as a cleaner energy alternative, the potential for increased uranium demand grows, making the GX URA ETF an attractive option for investors looking to capitalize on the sector's growth.

Daily chart analysis

Analyzing the daily chart, the GX Uranium ETF completed a bullish impulse wave cycle in May 2024, reaching $33.69, up from $17.70 in July 2022. This represented an impressive gain of over 88% in 26 months. From an Elliott wave perspective, such a substantial rise is typically followed by a bearish correction. Since peaking at $33.69, the ETF has been undergoing a downward correction. Ideally, this would involve a three-wave bearish correction. Currently, the ETF appears to be completing the first wave of this correction, known as wave A (circled). After this wave concludes, a corrective bounce is expected for the second wave, followed by another downward move in wave C (circled), which will complete the corrective phase.

Alternatively, there is a possibility of a bearish impulse wave decline that could drive the ETF price back down to $17.70 or even lower. This scenario is plausible because the initial impulse sequence to $33.69 marked the completion of wave (c) of a supercycle degree within a larger bullish corrective cycle that began in March 2020. Given that both forecasts indicate a further decline, it is reasonable to expect the ETF to fall to at least $25 in the coming weeks.

Four-hour chart analysis

On the H4 chart, the bearish impulse wave from $33.69 is still unfolding and is currently in wave (5). There is potential for further extension towards the $27-$28 range, where wave (5) is expected to conclude. Following this, a bullish correction for wave B (circled) could occur, providing a temporary relief before the next phase of the bearish correction sets in.

Summary

Overall, the GX URA ETF's recent performance and technical analysis suggest that investors should prepare for potential downward movement in the near term while considering the long-term opportunities presented by the uranium sector's growth potential.

GX Uranium ETF (URA) Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.