Weekly Watchlist - January 20, 2024

Another strong week in the books for uranium stocks, District Metals was included in last weekend's watchlist and was up nearly 30%.

A few observations this week from the commodity markets

-Several Energy related stocks look like they may have found bottoms and are starting to create basing type action with the potential for breakouts in the coming weeks. With the current geopolitical situation, the sector could erupt at anytime.

-Lithium stocks have been getting absolutely crushed over the last month, I expect this trend to continue for awhile. It's worth making a list of your favourites and potentially scaling in when the time is right. The sector is extremely cyclical and will turn around again over the next couple years.

-Uranium stocks had another nice week, some of the names are starting to consolidate which is not surprising. I was happy to see District Metals up almost 30% through the week as it was a name I included in last weekend’s watchlist.

Here is one chart I wanted to share for the gold/silver bulls. The chart below has the fed funds rate on the bottom and shows that the last 3 times the cutting cycle has began, it has been the catalyst for gold to breakout. The market expects the fed to cut in the first half of 2024, if history repeats gold is going to break out to new all time highs this year.

Okay now let’s dig into the watchlist for this upcoming week.

Walker River Resources - $12 Million Canadian

What a close to the week for this stock, it was up over 37% on the day. The stock has a tight share count, and this move happened on no news. This is usually a bullish indicator and that those left in the stock have strong hands. It cleared out all the resistance from 2023 in one week.

The company is focused on their project in Nevada, and had some very encouraging assays results from the 2022 campaign, it was very inactive in 2023 likely due to the poor market conditions we have been in. They recently announced a private placement which hasn’t closed yet. I will be interested to see what they plan to do moving forward.

Athabasca Oil - $2.5 Billion Canadian

Athabasca has shown amazing strength through a rough patch for oil stocks, it is hovering around multi year highs right now and looks poised for a big move. The stock has outperformed the S&P 500 since Jan 2021. What a bargain it presented at .12 cents in 2020. That is what buying at a cycle low can do for you.

Goviex Uranium - $162 Million Canadian

The stock is 1/3 of its 2021 price when uranium ran to $50. It’s been a real laggard recently, and that may present an opportunity. We seen some increased volume last week and the stock is on watch for a breakout. Investors are more concerned with the potential geopolitical risk in Niger due to the military coup which explains the price action here over the last year.

They have 2 projects that are mine permitted, the larger one is in Niger with over 100 million lbs of uranium resources and a smaller project with over 50 million lbs in Zambia. Project financing is the next step.

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