After a multi-year run of disappointing investors, the Global X Uranium ETF (NYSEArca: URA), which tracks uranium miners, started 2017 on fire. For the first couple of months of the year, URA looked as though it was legitimately snapping out of its lengthy slide, but much of URA’s good work has recently been undone.
In fact, the largest uranium ETF has tumbled nearly 20% since its first-quarter high, paring its year-to-date gain to 13% along the way. Worse yet, some traders and technical analysts see more downside coming for URA and uranium stocks.
Adding to the recent pressure on URA is that uranium prices continue tumbling. As is the case with other mining equities stocks and ETFs, rare are the occasions when these investments rise while the material they mine loses value. Some technicians view $15 as critical for URA. Unfortunately, the ETF recently violated that important price point.