Skyharbour Resources (SYH.V) ended off the third quarter with a bang. From the lows at $0.30 to recent highs of $0.87, the stock rallied 176% in less than 1 month. Uranium was hot, and I think will still be hot. Nothing moves up in a straight line, and we are currently in the pullback/consolidating portion of the uptrend. Remember, the stock is up 194.12% year to date.

Who are Skyharbour? They are a Uranium explorer in Canada’s prolific Athabasca region. This is the place you want to be. Top tier high grade Uranium.

Throw in great and experienced management, a great property portfolio in a top tier jurisdiction with joint ventures and partnerships, a who’s who in notable shareholders (including Marin Katusa), drill results providing catalysts, and the Uranium Market fundamentals plus technicals…I would say we have a real winner here.

Skyharbour was covered (and is closely watched) by our mining expert Greg Nolan. In his latest piece on the company, he details the fundamentals of the company and the geology of the Athabasca region while we wait for pending drill results. He loves their properties as they boast significant discovery potential. If Greg likes the stock, it is saying something. Check his piece out if you want a more detailed look at the geology.

We all know that Uranium bull in our investing circles. I would say I am the bull in my circle. I have always thought Uranium would be the way to go because it is the cleanest green energy. No CO2 is released. The issue is storing and dealing with the Uranium afterwards. But it makes sense for the world to go nuclear going forward. Nuclear just has bad rep due to Fukushima. People think it is dangerous, but believe it or not, I can be sitting here writing this article with a yellowcake right next to me. It becomes dangerous when the uranium goes through nuclear fission. Another thing to mention is that Fukushima was an OLD reactor.

A lot of nuclear reactors that were built decades ago scare those not up to date with the sector. An issue might go wrong and cause environmental damage…or a Chernobyl. But modern day reactors are some of the safest buildings in the world. Marin Katusa always tells the story that the media largely ignores: when the Fukushima earthquake and tsunami happened, the people ran to the modern day nuclear reactor for safety with its earthquake proof structure and rising walls to keep away the water.

China, India and many other emerging countries are looking at nuclear energy as their clean energy choice. Modern day reactors are being built which will just increase the demand for Uranium.

Don’t count out the US. Uranium is a strategic asset, and even Bill Gates himself is bullish Uranium. He is saying Nuclear Energy is how we fight climate change due to its CO2 free emissions. Right now 20% of America’s electricity comes from nuclear, so there is definitely room for expansion. In supply and demand, Gates mentions there are more nuclear reactors slated for retirement than there are being built.

Commodities in general have been on a tear, but Uranium has been hitting levels not seen since 2012. Rising Uranium prices play a role in rising Uranium explorers and producers. And the good news is that we still have room to go!

Above is the all time monthly chart of Uranium, the breakout above $40 was huge. That is now the support level we are working with moving forward. The next resistance level appears to be higher than the $60 level.

I also suggest you follow Sprotts Physical Uranium Trust. It made big headlines when it was released, and some say their purchases were what was driving Uranium prices higher. The ticker is U.UN.

Just a quick note on the chart. Support is down at the $12.00 zone. As long as we remain above it, we stay bullish. I would look to add there on a successful retest. To the upside, the $18.50 zone needs to be taken out for new highs. This is the proxy chart to use for physical Uranium. And you will see how similar it looks to Uranium explorers in just a bit.

Before I show you the current Skyharbour chart, let’s go back to my latest chart back in early September 2021. I was frontrunning the breakout on both Uranium and Skyharbour.

The break above $0.40 met all my market structure criteria. I turned bullish on that breakout confirmation. We hit my target resistance at around the $0.60 zone. But now…

We have broken well above the $0.60 zone which now becomes support. We did retest it back in early October with a nice bid up on October 12th. Buyers are defending it, and we are bullish as long as price stays above $0.60.

I want to zoom out longer term. If you are bullish Uranium in general, then this will get you very excited.

Just look at that monthly set up. I love these long ranges. This range has held since 2014. We are  just about to confirm a breakout. Almost happened in September, but instead we created a large wick and closed back below resistance. We will try once again in October, and with just 4 more trading days for the month…things are looking great right now. We confirm this monthly close, Skyharbour is ready to push forward. Just using the monthly levels, we are targeting a break of $1.00 up to $1.50.