The Uranium Miners ETF (URA) is set for a successful year in 2026, driven by rising global demand for nuclear energy. This ETF focuses on uranium mining and exploration companies, offering investors a chance to benefit from the sector’s long-term growth. URA selects producers, developers, and related stocks that will gain from a tightening uranium market. The monthly Elliott Wave chart for URA shows its Grand Super Cycle completed at $6.95. After this low, the ETF started a new upward wave ((III)). Wave I peaked at $31.60 before a corrective wave II dipped to $17.65. A nested formation emerged with wave ((1)) at $33.66 and wave ((2)) retreating to $19.50. Staying above these levels, especially $6.95, indicates that pullbacks will likely find support. On the daily chart, URA demonstrates a strong rise from the wave ((2)) low on April 7, 2025. Wave (1) ended at $42.22, followed by wave (2) at $35.64. In wave (3), wave 1 reached $60.51 before wave 2 pulled back to $39.95. As long as the $19.50 pivot remains intact, the ETF is expected to find support and continue moving upward. The long-term outlook for the Uranium Miners ETF (URA) is very positive as we enter 2026. The analysis shows that we are in a major upward wave, with strong support at $19.50 established from a pullback last year. As long as this level holds, the path of least resistance is upward, making dips good buying opportunities. This optimistic outlook is backed by a tightening fundamental market. After the COP30 climate summit late last year, many countries reaffirmed their commitment to nuclear energy. Recently, China’s National Energy Administration approved eight more reactors. This steady demand fuels the sector’s strong outlook. On the supply side, major producers like Kazatomprom announced in their Q4 2025 results that production would remain limited at least until the first half of 2026. This imbalance between supply and demand has pushed uranium’s spot price above $110 per pound, a significant level not seen since before the Fukushima incident. Historically, periods of high spot prices often lead to major rallies in uranium stocks. In light of this, traders should consider any weakness as an opportunity to take bullish positions. Buying call options on pullbacks towards $39.95, which marked a low in late 2025, is a strategy to take advantage of the next upward movement. We suggest looking at options expiring in March and June 2026 to allow time for the trade to develop. For a more defined approach to risk, using bull call spreads can be wise. This strategy lets us benefit from potential gains while limiting our maximum loss if the market shifts against the trend. Structuring these spreads around the recent highs near $60 can capture momentum if URA breaks out further. Also, considering the upward trend, selling out-of-the-money puts below significant support, like the $35.64 level from last year’s correction, is a good strategy. This way, we can either earn premium as the ETF climbs or buy shares at a better price. This aligns with the expectation that pullbacks will find strong support.

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