Over the past few weeks, we here at theinvestar.com had speculated that uranium equities could be poised to rise higher if only they could hold recent gains and stay above support levels established in April and subsequently rise above previously established resistance levels. Our reasoning was due to the sideways trading seen in April, as depicted by TICUA our uranium equities index, the numerous charts flowing from the upper left hand corner to the lower right with very low volume near the end and the fact that when we had our first upwards movement it appeared the market "moved on a dime" accompanied by very high volume.
We also watch the financing markets very closely and had noted the recent financing news was regarding cancelled offerings and those which came in lower than expected or on unfavorable terms. When we saw companies willing to go shopping for competitors we knew something was up, and it seems to be a rising tide. Currently we have Frontier Pacific (FRPMF.PK) as the target of a buyout and Khan Resources (KHRIF.PK) attempting a takeover of Western Prospector (WEPGF.PK). In Australia, where there are numerous uranium explorers with market caps under A$20 million, many companies have been selling stakes at or above 10% of the shares outstanding to outside investors.
Theinvestar's Canadian Uranium Average is up strongly since early May with strength from all segments, but the largest gains coming from the near-term producers and beaten down juniors. The index has held support recently and just broke out of overhead resistance with yesterday's stellar returns.
We also watch the financing markets very closely and had noted the recent financing news was regarding cancelled offerings and those which came in lower than expected or on unfavorable terms. When we saw companies willing to go shopping for competitors we knew something was up, and it seems to be a rising tide. Currently we have Frontier Pacific (FRPMF.PK) as the target of a buyout and Khan Resources (KHRIF.PK) attempting a takeover of Western Prospector (WEPGF.PK). In Australia, where there are numerous uranium explorers with market caps under A$20 million, many companies have been selling stakes at or above 10% of the shares outstanding to outside investors.
Theinvestar's Canadian Uranium Average is up strongly since early May with strength from all segments, but the largest gains coming from the near-term producers and beaten down juniors. The index has held support recently and just broke out of overhead resistance with yesterday's stellar returns.
