ΣL Uranium Composite - 31st January 2024 | @ 77 Days
'A' class signal detected in in Sigma-L Uranium Composite (NXE/DNN/UEC/CCJ/UUUU). Average wavelength of 77 days over 12 iterations since September 2021. Currently approaching a peak
ΣL Cycle Summary
In addition to our analysis for Uranium via the medium term wave at ~ 150 days, this new addition examines the next shorter periodic driver at ~ 77 days, all via a composite of prominent instruments in the sector. This wave is excellent, being stationary and very well spectrally separated, as seen in the time frequency plots below. It has very nicely punctuated the rise of the larger periodic component which troughed back in mid 2023, a good sign for the significance of this wave. The overall composite rise has been largely linear with some small variance amongst constituents in our composite - UEC being remarkably bullish whilst UUUU has clearly lagged since October 2023. This component is due to peak shortly, we are a touch early according to the phasing so the trade is classed as an early sell, more detail below.
Current Signal Status
Defining characteristics of the component detected over the sample period.
Detected Signal Class: A - learn more
Average Wavelength: 76.87 Days
Completed Iterations: 12
Time Frequency Analysis
Time frequency charts (learn more) below will typically show the cycle of interest against price, the bandpass output alone and the bandwidth of the component in the time frequency heatmap, framed in white. If a second chart is displayed it will usually show high-passed price with the extracted signal overlaid for visual clarity.
Current Signal Detail & Targets
Here we give more detail on the signal relative to speculative price, given the detected attributes of the component. In most cases the time target to hold a trade for is more important, given we focus on cycles in financial markets. Forthcoming trough and peak ranges are based upon the frequency modulation in the sample (learn more).
FM: +- 4 Days
AM: N/A (Composite)
Next Trough Range: 16th - 24th March, 2024
Next Peak Range: 7th - 15th February, 2024
Sigma-L Recommendation: Early Sell
Time Target: ~ 20th March, 2024
Current Signal Phase
This is ‘how far along’ the cycle is in it’s period at now time and is related to the predicted price action direction.
Current Signal Frequency Modulation (FM)
This is how much, on average, the signal detected varies in frequency (or wavelength) over the whole sample. A lower variance is better and implies better profitability for the component. Frequency usually modulates relatively slowly and over several iterations.
Current Signal Amplitude Modulation (AM)
This is how much the component gains or loses power (price influence) across the sample, on average. Amplitude modulation can happen quite quickly and certainly is more evident than frequency modulation in financial markets. The more stable the modulation the better.