We recommend taking profits in Axonics (AXNX) and Casey’s General Stores (CASY) because they have lost short-term momentum in reaction to overbought conditions. We are tightening our stop-loss level in ProShares Short QQQ (PSQ) from $12.47 to $12.80 to protect gains.
Our latest idea is Uranium Energy Corp. (UEC), which we found in a search for stocks with positive intermediate-term momentum:
UEC has a weekly MACD “buy” signal that suggests intermediate-term momentum has shifted meaningfully to the upside. The signal is within the context of a long-term uptrend, noting UEC managed to hold long-term trendline support in July.
UEC recently confirmed a short-term breakout above initial resistance from the daily cloud model (not shown), and it has seen short-term momentum shift positive as well, supporting upside follow-through.
An upside target can be gauged by resistance from November 2021 ($5.79). The rising 20-day moving average, currently near $4.08, can be used as a trailing stop-loss.
Uranium Energy Corp. (UEC, $4.56):
Target: $5.79
Stop-Loss: $4.08