Chart of the Day -- Fronteer Development Group

Uranium stocks are moving up as a group. Let's just look at one of the stocks from my "Golden Age of Uranium" report ...

Looking at this chart, you can see that FRG consolidated in a triangle, then broke out to the upside. You can also see that the 10-day moving average (the pink line) is crossing above the 20-day moving average – this shows that short-term momentum is bullish. A longer-term measure of momentum, RSI, at the bottom of the chart is rising (bullish) but not overbought yet. The short-term target on FRG is $12.00 – a 27% move from recent price.

There is a fundamental driver for FRG’s move. The company has some great gold exploration properties, and you’ve seen the bullish move in gold lately. More importantly, Aurora Energy Resources, (AXU on the TSX) in which FRG has a 47% stake, just announced a new uranium discovery at its property in Labrador, which I visited last year. The initial drill results hold the potential for adding considerable width and grade to Aurora’s uranium find in Labrador. However, it's not just FRG. You can see this across the uranium sector.

I just talked to one of the connected people in Vancouver. He said that the uranium players were so loaded with cash this year they took July AND August off. Now they're back to work. Hence, we are seeing prices rise. Very interesting, if that's how it pans out.

Check out my new gold and energy blog at MoneyAndMarkets.com