Uranium mining stocks and sector-related ETF surged over the past week and was testing its long-term resistance on Tuesday

The Global X Uranium ETF (NYSEArca: URA), which tracks global uranium miners, was among the best performing ETFs on Friday, has jumped on back-to-back gains over six sessions, surging 18.4% since its recent lows and briefly testing its long-term resistance at the 200-day simple moving average.

URA advanced 3.3% on Monday after Energy Fuels (NYSE: UUUU) climbed close to 18% before the trading day closed. Energy Fuels makes up 2.8% of URA’s underlying portfolio.

Further supporting the strength in the sector, Cameco Corp (NYSE: CCJ) gained 3.3% Tuesday. Cameco is URA’s largest component holding, making up 21.5% of the ETF’s portfolio.

Investors may be looking at the battered uranium miner space as a value play, given the improved strength in the sector.

Cameco CEO Tim Gitzel said that the uranium market has showed a “marked” improvement over the past year, but he cautioned that uranium prices are still nowhere near the level to restart idled production capacity or incentivize new production, Mining Weekly reported.

The uranium market has been supported by significant production cuts, reductions in producer inventories and an increase in demand, with the current spot price up about 40% year-over-year. The long-term price is about 6% higher than a year ago.

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