Interactive Investor

Yellow Cake shares worth keeping an eye on

This uranium play is up 50% in a year and 200% over five years. After revisiting his charts, independent analyst Alistair Strang reveals his new targets.

6th June 2024 07:32

by Alistair Strang from Trends and Targets

Share on

periodic-table-uranium-picture

The company Yellow Cake Ordinary Shares (LSE:YCA) provide investors with direct exposure to the uranium market, rather than the product itself. The share price is a reflection of this and when we reviewed them nearly a year ago, the price indeed increased and achieved both our target levels.

It’s now time to revisit the tea leaves and try and figure out what’s coming next. Our secondary target had been 655p, a number the company exceeded and also one which the share price has been fluttering above and below since meeting our secondary target level.

This sort of behaviour is generally quite positive as it carries an implicit suggestion that further movement is possible.

In the case of Yellow Cake, above 719p looks like the next trigger level, one which should prove capable of launching the share price to an initial 832p. Our longer-term secondary is now at 893p, a price level where we shall once again expect some turbulence in the future.

Obviously, we need give a converse argument, just in case this overdose of positive bias has coloured our interpretation of the numbers. Share price closure below 600p looks a touch dangerous, perhaps proving able to force reversal to 478p and hopefully, given the Red uptrend since 2020, a bounce.

Our secondary, should such a drop target break, calculates down at 407p and, visually, considerable hope for a price rebound as historically it appears the 400p level had some sort of meaning for the Uranium price for a few years.

It’s a bit of a quirky one but we suspect it's worth keeping an eye on.

yca060624.jpg

Source: Trends and Targets. Past performance is not a guide to future performance.

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

Get more news and expert articles direct to your inbox