The price of uranium had a nice run since that V-shaped recovery in April 2020. The URA ETF, for instance, went from $7 to $31 in less than two years. The increase in price was fueled by speculation, reduced supply, and more countries reassessing their previous decisions to abandon this source of energy.

Consequently, the spot price went higher and so did most uranium miners. Back in April, we wrote that uranium’s bull market did not end. What are the expectations for the bull market in uranium as we head into the second half of 2022?

We start our analysis with the uranium price chart which exhibits the uranium spot price.

The uranium spot price had some sort of bullish wedge in the period of October 2021 to March 2022. The subsequent price action confirmed the bullish wedge: a bullish breakout. After almost touching the $66 level, uranium's spot price came down. All we can observe right now is some sort of consolidation right above the bullish wedge breakout.

The questions today are the following: Is the uptrend in Uranium miners exhausted at this point, and what can investors expect in terms of price action?

To answer these questions, we will take a look at the URA ETF’s chart. The daily chart below shows that the price hit a strong resistance area. It has recently been pulling back from that area, and it might see support in the $19 zone.

To initiate new positions, investors want to either wait for a successful retest of the $19 support level, or a breakout above the dotted line. Ideally, URA should cross above $30 for the next leg up.

We mention these levels as significant, but it is also likely that the price may consolidate for a little while to digest the significant gains from the last two years. This last run that started in May 2022 seems like a relief rally, and it appears like it is about to get rejected.

The chart shows that a possible rejection may occur as the uranium spot price hits the $53 level.

The weekly chart is fascinating, as it shows a multi-year 'rounded bottom' pattern working towards a resolution. 

It also shows the importance of the support in the $19 area, as well as the strong resistance the price is likely to face once it hits that $30 area. For now, it seems very likely that the price will consolidate in between those two important price levels. Given that multi-year rounded bottom, it appears likely that it will eventually breakout to the upside.