NextGen energy (NXGN Stock) correcting cycle from March 2020 low

NextGen Energy (ticker: NXE) has rallied over 300% this year following the spot price of Uranium. The stock got a boost this year on the back of new physical Uranium ETF by Sprott. It is the world’s only physical uranium fund. The Trust has been on a buying spree, increasing its stockpile by 45%. However, investor demand from hedge funds and family offices has been strong this year even before the launch of the new trust on July 19.

On the back of the expectation of Fed’s tapering, the stock is now pulling back to do larger degree correction. We will look at the Elliott Wave structure below:

$NXE weekly Elliott Wave chart

NXE

NXE could be ending cycle from March 2020 low and now looking to do larger 3 waves pullback to correct this cycle before the rally resumes. Decline to 0.50 ended wave (II). Wave (III) is currently in progress as a 5 waves impulse Elliott Wave structure. Up from wave (II), wave I ended at  6.17. Look for wave II pullback to unfold in 3, 7, or 11 swing before it resumes higher.

$NXE daily Elliott Wave chart

NXE

NXE Daily Chart above shows the stock has ended cycle from March 2020 low. Wave II of (III) pullback is in progress as a zigzag structure in which wave ((A)) of this zigzag remains in progress. After a 5 waves down and wave ((A)) ends, expect the stock to rally in wave ((B)) then turns lower 1 more time to complete wave ((C)) of II. As far as pivot at 0.5 low remains intact, expect further upside in the stock.

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