Image Source: Unsplash

UUUU Breaks Significant Support — Time to Buy or Sell?

Shares of Energy Fuels Inc. (UUUU) fell another 7% Monday, extending a three-week decline from all-time highs.

The drop follows a sharp sentiment shift in the rare-earth and uranium sectors after President Trump’s recent trip to China eased trade tensions and undercut one of the market’s strongest geopolitical catalysts.

Rare Earth Stocks Slide as Trade Tensions Ease

U.S. rare-earth names - long viewed as beneficiaries of strained U.S.–China relations and export control fears - are retreating as the urgency behind domestic development cools.

The new trade framework has reduced the immediate need for rapid U.S. production expansion, prompting a pullback across the group.

Other notable movers include:

• Lithium Americas (LAC) –9.6%
• USA Rare Earth (USAR) –8.7%
• Met Coal (METC) –8.6%
• MP Materials (MP) –6.4%
• The Metals Company (TMC) –1.7%

Why This Pullback May Be a Buying Opportunity

Despite the short-term weakness, the long-term fundamentals remain intact.

The nuclear power renaissance - fueled by artificial intelligence, data center expansion, and national energy security goals - continues to drive demand for uranium and related materials.

Companies like Energy Fuels (UUUU) and Cameco (CCJ) remain key suppliers in the U.S., with active projects to expand extraction and processing capacity.

While trade saber-rattling has quieted in recent weeks, investors understand that geopolitical risk between Washington and Beijing is far from resolved. Any renewed escalation will send capital back into the rare-earth and uranium trade quickly, with UUUU shares likely to rebound toward prior highs.

UUUU’s Technical Outlook

From a technical perspective, UUUU has entered a range-bound trading pattern between $17.50 and $20.

The lower end of that range coincides with the stock’s rising 50-day moving average, creating a zone of strong technical support.

As long as that trendline holds, the broader uptrend remains intact.

(Click on image to enlarge)

Meanwhile, the options market is flashing an important sentiment signal. Bearish put activity has increased at the $18 strike for December, suggesting traders are positioning for continued weakness.

Historically, this type of one-sided bearish positioning often marks the later stages of a correction — improving the contrarian outlook for a rebound.

• Demand for uranium and rare earths isn’t going away. The global nuclear build-out and AI-driven power demand ensure a structural tailwind for years to come.
• Trade relations remain fragile. Any disruption will immediately reignite investor interest in domestic suppliers like UUUU and MP.
• Technicals remain bullish. Energy Fuels remains in both short- and long-term uptrends, with key support in place and improving contrarian signals.

Bottom Line

Expect to see some volatility as the stock trades hands from short-term sellers to long-term buyers between $17.50 and $20. Remember, this stock was extremely overbought just weeks ago and required a “healthy correction.

The fact that shares are still above their bullish 50-day moving average suggests that we are still within that definition.

My outlook remains bullish with a 4–6 month target price of $35.

More By This Author:

Taiwan Semiconductor Still Has Room To Run — And The Math Shows Where
Micron Technology Is Up Big This Year But It May Have Hit A Temporary Stall Point
The Perfect AI Stock Does Exist. It’s Microsoft.