Skip to main content

The Globe and Mail

This uranium miner is in need of some good news

Canadian miner Fission Uranium Corp. is acquiring Alpha Minerals Inc.


Hi Lou,

What do think is going on with Fission Uranium?

Many thanks,

Story continues below advertisement


Hey Phil,

Thanks for the assignment.

Fission Uranium Corp. is working up a number of discoveries in the Athabasca basin of Saskatchewan, which is the world's richest source of high grade uranium. Their most advanced project is Patterson Lake South which is a shallow deposit exhibiting extensive high grade mineralization. What caught my eye while going through the company's Apr. 30, 2014, presentation was their patent pending "Boulder Finding Technology". When a company develops a better way to identify where mother nature has hidden her treasures there is an added value to the investment.

My first cursory scan of the chart identified that what had been an advance has developed into a decline. What we need to deduce is where there is support and if there are signals indicating that the selling has been exhausted. A further more detailed examination will help answer those questions.

The three-year chart highlights the advance that began in January of 2014 triggered by the release of drill results identifying high grades in a sample and the announcement that Japan would be restarting the nuclear facilities idled by the disaster at Fukushima. However the shares topped out at $1.70 as the move higher met resistance, and investors reacted to the sell signals generated by that the RSI and the MACD.

The six-month chart provides a closer look at the sell signals that surfaced by late March and the painful dissipation of wealth that ensued. The decline has seen the stock melt through the 50- and 200-day moving averages and unfortunately a breach of support at $1.20. At this time the MACD and the RSI are indicating that we can anticipate more selling. The next critical level of support that needs to hold is at $1.00 otherwise we could see a retest of $0.80.

Story continues below advertisement

The charts tell the story of a stock that has been under pressure. There was a run-up on good news but now it's back to basics. FCU is a junior exploration company whose shares move on drilling results. If you are going to get involved with this company you'll have to get tuned in with their drilling programs and what is happening in the industry. The other thing you should follow is how they plan on monetizing their "Boulder Finding Technology".

Make it a profitable day and happy capitalism!

Have your own question for Lou? Send it in to

Report an error
About the Author
Lou Schizas

Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality - and a true believer in the happiness-inspiring powers of capitalism. More


The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at