We are tightening our stop-loss thresholds for two existing long ideas as indicated below:
Snap, Inc. (SNAP): to $9.10 from $8.40
Pilgrim’s Pride Corp. (PPC): to $24.00 from $23.20
Today, we are adding the Sprott Uranium Miners ETF (URNM) to our long ideas after a positive earnings reaction from its second largest holding Cameco Corp. (CCJ), which has generated a positive technical catalyst:
URNM saw a steep upmove in September following a long-term base breakout, after which it saw a pullback in October. The pullback appears to have run its course, with yesterday’s strength generating a bullish shift in short-term momentum, which supports upside follow-through.
Our intermediate-term indicators point higher for URNM, indicated in the chart below, and our long-term indicators have also seen a bullish shift following the base breakout. Furthermore, URNM is extending to new all-time highs relative to the S&P 500 Index (SPX), highlighting a trend of relative outperformance.
A measured move extension generates a target of ~$57, which seems achievable in the intermediate term. The 50-day moving average is initial support for URNM, and therefore can used as a trailing stop-loss level.
Sprott Uranium Miners ETF (URNM, $46.95)
Target: $57
Stop-Loss: $43