GX Uranium ETF (URA) Elliott Wave Analysis
Function - Counter trend
Mode - Corrective
Structure - Impulse for wave A (circled)
Position - Wave (4) of A (circled)
Direction -  Wave (4) is still in play
Details -  A bearish impulse from 33.69 is emerging for wave A (circled) and we should see further decline.

Overview of GX URA ETF

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.

H4 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.

Technical Analyst : Sanmi Adeagbo

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