Uranium Price Analysis Shows Recovery Building Above $85 Support

Despite some lack of momentum to the upside in the most recent session, buyers have stood firm to hold up support at $84.

Notably, the big picture is still positive after this dramatic pullback from its February highs above $100 per pound. While prices are not yet approaching big resistance levels, both the longer time frame and the shorter time frame indicate that selling pressure has eased and momentum indicators are still on an upward trend.

Uranium Holds Above Key Support as Recovery Consolidates

Uranium settled at $85.10, hitting 0.18% down on the day, according to data from Trading Economics. One year is the time frame that demonstrates that commodity prices have been stabilizing from an explosive rally earlier this year, which saw prices briefly cross $100.

After that rally, uranium was swiftly pulled back and headed back into March’s losses. Later, sellers drove prices towards $84, where demand began to slowly return, and found a solid support area.

Uranium has had little volatility since April, as per TradingEconomics data, when it was trading in a relatively tight range between $84 and $87. Buyers, meanwhile, have continued to defend dips below $85, which has prevented a further correction.

The short-term support zone has now narrowed from $84.50 to $85.00. The short-term support level has tightened up to $84.50 to $85.00. If the trend continues to move down from there, the previous consolidation zone around $82 is vulnerable. The good news is that the first resistance is seen at a price range of $86.80 to $87.20, while the more formidable one is located at around $89, where sellers gained the upper hand before.

Technical Signals Show Momentum Improving

Meanwhile, the hourly chart on TradingView also offers a sense that the sentiment is turning more positive on the shorter time frames given the recent downtrend.

Uranium Energy Corp. (UEC) has rebounded from its lowest level in June around $9.50 and was trading at $10.84 at the time of this writing. From the second half of June, Price continued to make higher lows until settling above $10.80.

According to the technical chart, the MACD is one of the bullish indicators. The MACD line was slightly above the 0.0404 signal line and has been positive around 0.0055 on the histogram. Momentum is still relatively soft, but it has shown a positive crossover, suggesting buyers are slowly taking the lead after the previous weakness.

The RSI (14) rose to 60.24, and its moving average kept hovering around 52.52. This keeps the indicator clearly over the 50 level without getting into overbought mode (above 70). The reading indicates that buying pressure has increased with some upside potential if momentum holds.

Price action is also indicative of better market participation. Following the big sell-off in early June, each subsequent sell-off has been less severe, suggesting a shift in control.

Uranium remains in a price channel for the time being. The recent recovery remains intact as long as it stays within the $85-$86 band, but the horizon line at $87 will further support the bull side of the market, leading to the $89-$90 zone. A break below $84.50, however, would break the current structure and focus once again on the lower support levels of March and April.