By J. Taylor
J. Taylor's Energy & Energy Tech Stocks
I am convinced economist John Williams is right when he speaks of a 2007 recession and rising prices at the same time. We are in my view about to revisit the economic landscape of the 1970s. Only it is much more dangerous this time because of the enormous indebtedness the U.S. has gotten itself into not only to ourselves but more importantly to foreigners. John Williams even believes we are heading toward a hyper inflationary event by the end of this decade. I'm afraid he is right because policy makers intervene in markets to keep unpleasant but necessary, excess correcting pain from happening in the economy. Policy makers are pushing the global economy to the limits and when those limits are finally exceeded we will either get a devastating deflationary collapse sooner or later with the later version having a hyper inflationary experience preceding it. Detailed reasoning for this view is provided in great detail in J Taylor's Gold & Technology Stocks weekly hotline. Visit www.miningstocks.com and/or call my assistant, Claudio Bassi at 718 457-1426 to subscribe.
We are convinced that inflation is on the rise and that commodity prices including energy are in a long-term secular bull market. Indeed, our Inflation Deflation Watch is giving all the signs that the inflation illness is growing albeit at a more moderate pace over the past few months. I think the picture is extremely bullish for energy, precious metals and base metals too. And for unique reasons the most bullish metal of all may be uranium.
Bayswater Uranium: (TSX.V: BAY Closed at C$1.54) near the trading high of C$1.55 (resistance) and the low of C$1.50 which is also support. Price has been moving sideways in a continuation triangle but is very close to an upside breakout rally. Following resistance is C$1.57, C$1.76 and C$2.13. Should it sell, the price will support at C$1.40 and turn around to rally up to C$1.50 again. We think it breaks through the triangle's apex for higher prices. www.bayswateruranium.com.
Cameco Corp: (TSX & NYSE: CCO; Closed at $38.04) with a trading high of $38.33 and low of $37.62. Support is $38 and resistance is $40 followed by stronger resistance at $42. CCJ is ready to spring out of a very long triangle originating last April. The upper goal is $45.34 the high for last year. www.cameco.com.
Canalaska Uranium Ltd: (OTC BB: CVVUF; TSX.V: CVV; Closed at C$.83) on the trading high with a low of C$.77 which is also support. C$.93 is our next goal with C$.96 next overhead resistance. Following goals -prices would be C$.97 (our top) then C$1.01 and C$1.08. The chart has a nice smooth up trend moving into its fourth month. www.canalaska.com.
Copper Ridge Exploration: (TSX.V: KRX; Closed at C$.145) with a trading high of C$.15 and low of C$.14. Next high price is C$.18, C$.22 with wave set high of C$.25 the previous high. The stock is volatile and has moved in a trading range of C$.11 to C$.25. www.copper-ridge.com.
Denison Mines: (TSX: DML; Closed at C$31.25) on the trading high with a low of C$30.33. New support is C$30 with resistance at $31.36. We forecast a final top of $33.83 before a normal correction. A selling-profit taking correction should take the stock back to C$25. The close was right on its two year high with more buying ahead. The stock is now moving vertical so traders should tighten stops. www.denisonmines.com.
Energy Metals: (TSX: EMC; NYSE: EMU; Closed at $9.83) with a trading high of $9.94 and low of $9.73. Support is $9 and resistance is $10. The pattern is an off-balance head and shoulders with droopy right shoulder showing bias toward selling. The stock has strong support at $9 but could easily slip to $8 on the pattern. If price can break through the rectangle top at $10.02 it is next followed by $10.88 very near the highest price in our chart trading range. We think $10.96 on the technicals would be the top. A newer breakout takes prices to $11.73.
Energy Metals Corporation reports that the South Texas Mining Venture (STMV), a partnership between Energy Metals (99% share) and Everest Exploration, Inc. (1% share), has reached key milestones in its efforts to renovate its Hobson uranium processing facility near Hobson, Texas. This fully licensed uranium facility was constructed by Everest in 1978 and operated from 1979 until 1991, producing more than 3 million pounds U3O8. According to EMC, all development activities associated with a restart of Hobson are on schedule and within budget to resume operations during the first quarter of 2008.
The Hobson plant will have an annual capacity of 1 million pounds U3O8, significantly greater than its original design capacity of 600,000 pounds U3O8 per year. Piping and instrument drawings are 95% complete, and requests for quotations have been issued for equipment such at the rotary vacuum product dryer, yellow cake thickener, and filter press. Orders for these items are expected to be placed during February. In addition, designs for supplemental office facilities, reinforced concrete foundations, and related structures are being created.
Permission was obtained from the Texas Commission of Environmental Quality (TCEQ) in October 2006 to work-over, evaluate and recommission the deep disposal well. This work-over and testing program began on November 14, 2006 and is essentially complete. Following completion of a required "pressure fall off" test, a status report will be submitted to the TCEQ along with a request to resume operation of the well. Approval is expected during the first quarter of 2007. www.energymetalscorp.com.
ESO Uranium Corp: (TSX.V: ESO; Closed at C$.83) with a trading high of C$.86 and low of C$.81 also support. Resistance is C$.95 which is next after move sideways basing and consolidation. The cup and handle pattern which we have seen in other charts from the group is very bullish. Following prices above C$.95 are C$1.02, C$1.15, C$1.25, C$1.27 and the new and former high of C$1.48 C$1.50. www.esouranium.com.
High Plains Uranium: (TSX: HPU; Closed at C$1.47) with no quotes for Monday 1-29-07. C$1.50 is overhead resistance and lower supports of C$1.35 and C$1.25. The trend is down and unchanged from 1-19-07. www.hpur.com.
JNR Resources, Inc: (TSX.V: JNN; Closed at C$2.70) with a trading high of C$2.73 and low of C$2.62. Support is C$2.50 and resistance is C$3. The stock double topped and is correcting in a standard A-B-C pattern and price should seek C$2.50 next. Support should hold followed by C$2.60, C$2.70. An upward sloping channel line from last October is major support and after the current correction, price should easily stay above it and move higher. www.jnrresources.com.
Mawson Resources: (TSX.V: MAW; Closed at C$2.13) on the trading low. The high was C$2.22 and support is C$2 with resistance at C$2.25. The next higher goal is C$2.32 and the pattern is up for the shorter term. There is a large price gap from C$1.64 to C$2 which could be filled on a major correction if price broke down below $2 and closed three times. We do not expect this event. After C$2.32 we see C$2.52 and C$2.72. www.mawsonresources.com.
Northwestern Mineral Resources: (TSX.V: NWT; OTC BB: NWTMF; Closed at C$.71 which is also the high and low trading range on little volume. Support is C$.70 with resistance at C$.75. The pattern is a cup and handle which is bullish. It appears fully formed and ready for a new rally. Following goals in Canadian dollars would be $.71, .75, 1.12, 1.22, 1.31, and C$1.35 also the maximum previous high. www.northwestmineral.com.
Pele Mountain Resources: (TSX.V: GEM; Closed at C$1.13) with a trading high of C$1.15 and low of C$1.10. Support is C$1.15 with resistance at C$1.25. The pattern is bearish after a steady price rise since last November. Price dropped beneath the lower channel line and should seek support at C$1. If the stock recovers, follow-on Canadian prices would be 1.11, 1.24, 1.35, 1.46, with a top at $1.50 and a maybe $1.62. Price of C$1.50 was the old high and will impose strong resistance. The recent rally was 2.5 months. www.pelemountain.com.
Uracan Resources: (TSX.V: URC; Closed at C$1.13 on the trading low with a high of C$1.17. Support is C$1 and resistance is C$1.25 with price moving sideways into a triangle. The annual average trading price was C$.48 and this stock closed at C$.46 last Friday. Next higher Canadian prices would be .48, .59, .66, .72, and our high forecast of C$.78. We see a pattern, which is among our proprietary trading ideas telling us this stock will rally hard on a breakout. www.uracanresources.com.
Uranium Energy Corp: (OTC BB: URME; Closed at $5.15) with a trading high of $5.70 and low of $5.09. Support is $5 and resistance at $6 in a trading uptrend. Price has already broken through $5 which is main resistance. Next we see $5.53, $6 and our forecast high of $6.47. There is an old spike price to $7.33 which cannot be counted for a forecast. www.uraniumenergy.com.
Uranerz Energy Corp: (ASE: URZ; Closed at $3.40) and traded at $3.50 for the high with a low of $3.42. Support is $3 with resistance at $3.50. Follow-on prices could be $3.79, $4, $4.24, $4.61 our next forecast top and maybe $4.97. At this time, the stock is trading in a bearish triangle. It is important that $3 support holds or we sink to $2.50. www.uranerz.com.
Ur-Energy, Inc: (TSX: URE; Closed at C$4.13) in a new breakout up trend. The close was the trading high which means more buying ahead and the low was C$4.05. New support is C$4 and resistance is C$4.70. Higher possible prices would be $4.94, $5.53 and our new higher forecast of $6. A possible-maybe would be $6.47. www.ur-energy.com.
Uranium City Resources: (TSX.V: UCR; Closed at C$.46) with a trading high of C$.48 and low of C$.46. Support is C$.48 and resistance is C$.50. The higher forecast price is C$.78. The trend is mildly up and if C$.48-C$.50 support can hold, the stock should rally. www.uraniumcityresources.com.
Urasia Energy Ltd: (TSX.V: UUU; Closed at C$5.04) with a trading high of C$5.14 and low of C$5.01. Support is C$5 and major resistance is C$5.50. Follow on Canadian prices are $5.20, $5.64 and C$6.08 which is our top forecast. Large number of shares requires a lot of buying to move this stock. www.urasiaenergy.com.
Editor's Note: J Taylor is editor of J Taylor's Energy & Energy Tech Stocks, Box 770871, Woodside, NY 11377, 1 year, 12 issues, $179. www.jaysenergystocks.com. Prices listed are as of February 1, 2007. Prices and opinions by J Taylor and those listed in J. Taylor's Energy & Energy Tech Stocks are subject to change. www.jaysenergystocks.com.
