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Gold/Mining/Energy : Uranium Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Cheeky Kid who wrote (6317)	1/6/2007 9:08:27 AM
From: TheSlowLane	Read Replies (2) \| Respond to of 30237

I disagree. The charts are always accurate. It's the interpretation that can be problematic! I agree that charts can be more reliable with more heavily-traded stocks (though they are never a perfect predictor in ANY situation) but I think they are still useful with small stocks, particularly for determining overbought/oversold conditions for the purposes of timing entries or exits. In some cases, charts can work against you and that is something that also needs to be kept in mind. A perfect example of this is the uranium spot price. I can think of a few cases right off the top of my head where heavily-technically-oriented traders took one look at the uranium chart and determined that the sector should be avoided until the spot price made a pullback from its parabolic rise. And that was about forty bucks ago. Another case is Aurelian. Some people avoided it because of the big gaps on the chart, but those were breakaway gaps and those are the ones that usually do NOT get filled if the fundamentals justify it. Discovering many millions of ounces of gold is a very good reason for a company to deserve an immediate fundamental re-valuation.