$URA Technical Analysis: A Flag Pattern, Fractal Support/Resistance and Eventual Harmonic Patterns
The post $URA Technical Analysis: A Flag Pattern, Fractal Support/Resistance and Eventual Harmonic Patterns appeared first on ForexAnalytix - Blog.
The URA (Global X Uranium ETF) is an exchange-traded fund that monitors the performance of uranium businesses.
ETFs are stock exchange-traded investment funds that allow investors to obtain exposure to a diversified portfolio of assets within a specified sector or index.
The URA ETF focuses on firms involved in different elements of uranium mining, exploration, and production. This can include firms involved in uranium mining, processing, enrichment, or nuclear fuel production.
Investing in the URA ETF allows investors to acquire exposure to the uranium industry without having to buy individual uranium company securities. It offers a straightforward and effective method to participate in the uranium industry’s overall growth and performance.
It looks like a flag pattern, which usually breaks in the direction of the move that generated it. As a result, a breakdown of this flag pattern’s support may be expected, perhaps leading to a breach of the fractal support established at 18.31.
On the other hand, the current attempt to breach the resistance at 20.33 may no longer be considered an attempt but rather a foregone conclusion. As a result, we should keep an eye out for a possible retest of the prior highs printed between 23.86 and 24.34.
In practice, we should look for a break below the flag pattern’s support for potential downward movement or a break over its resistance and ultimate breach of the fractal resistance forged at 23.86 for potential upward movement.
With that said, let me now illustrate both possible options, starting with a collapse below the support zone.
A decrease is possible if the fractal formed at 17.65 refuses to hold. However, there are two price levels that we need to take into account. The first level is projected at 13.49, which corresponds to an extension of the last swing high between fractal support and resistance levels printed at 17.65 and 24.34, respectively. This is the area where a bullish deep crab pattern might occur.
The next price level to monitor is 9.76, which corresponds to a retracement to the 0.886% Fibonacci level, producing a bullish bat pattern.
In the case of a resistance breakthrough, however, there may be certain patterns appearing at key price levels that we need to highlight.
A bearish shark pattern could emerge at 27.28. This pattern pops up at the 161.8% Fibonacci extension of the most recent downward move between the fractal resistance forged at 23.86 and the most recent support forged at 18.31. A pullback/retracement may occur after its formation. It is important to remember that this shark pattern can also manifest at the 224% Fibonacci extension projected at 30.75. In reality, the pattern could show up at both Fibonacci levels and trigger downward movement once it is completed.
It is crucial to note that IF there is a potential for an upward movement that puts the asset back over the resistance established at 23.86, it may be the start of a further prominent upward movement. In this scenario, we should pay attention to the potential break of the fractal formed at 31.60 as well as any patterns that may emerge near 35.19.
Safe Trades,
André Cardoso
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The post $URA Technical Analysis: A Flag Pattern, Fractal Support/Resistance and Eventual Harmonic Patterns appeared first on ForexAnalytix - Blog.
