...Not very long ago it sure seemed like the uranium market was dead. 2016 saw uranium prices crumble to 12-year lows. Today, prices are off that bottom, but only a little...but, lo and behold, it appears to be rising from the rubble and coming back for a sequel.

Written by Sean Brodrick

Take a look at a chart of the Global X Uranium ETF (URA).

This chart shows that URA rallied big since November. In February, it started pulling back. That consolidation brought it back to nearly a 50% retracement of the big move...[but] 50% is a common Fibonacci retracement. It’s often tested before a stock or fund takes off again. Now, URA has clawed its way back above its 50-day simple moving average. This can be seen as a dividing line between bullish and bearish movements.

On the bottom of the chart I used a momentum indicator called the “Force Index” and it shows that URA’s Force Index just switched from bearish to bullish. Momentum is with the bulls on this one.

So what is the URA ETF anyway? This is a basket of leading uranium producers and explorers, including Cameco Corp. (CCJ), NexGen Energy (NXE), Uranium Energy Corp (UEC) and 23 more. The URA even has the Uranium Participation Corp. (URPTF) which holds physical uranium hexafluoride gas, among its components.

Now, you could buy one of those individual miners...but the beauty of the URA is you get plenty of upside without single-stock risk....[Take] Cameco, North America’s biggest uranium producer [for example:

You can see that in January, Cameco suffered a one-day, 18.5% drop. It recovered most of that but then it careened into a 19.5% drop. Again it recovered. Then it went into a “Slope of Nope.” By that, I mean, “You gonna buy a stock sloping like that?” “Nope.” (Now, this is not Cameco’s fault. Some events are beyond its control. Japan suddenly decided it was going to break long-term uranium supply contracts!)...

Now go back to the chart of URA above. Sure, it had a bumpy start to 2017. The whole industry was riding like an old Ford with bad shocks but URA’s ride was much smoother than the coronary special that Cameco went through - and it only charges an extra 0.7% annual expense fee.

Do the fundamentals in uranium support the price action in URA? No. Not yet, but as often is the case, stocks can lead the news. Next week, I’ll show you an interview I filmed at the world’s top mining conference with the CEO of a uranium company. He talks about the industry generally. He strongly believes prices are about to ramp up. That’s what we may be seeing priced into URA right now...

The Global X Uranium ETF (URA) closed at $16.43 on Friday, down $-0.13 (-0.79%). Year-to-date, URA has gained 27.66%, versus a 6.04% rise in the benchmark S&P 500 index during the same period. URA currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #30 of 122 ETFs in the Commodity ETFs category.