About a week ago, we wrote that “Laramide looks to have formed a rounded bottom formation. This technical formation usually suggests a change in trend from downwards to upwards.”

Now the rounded bottom formation is clear and a new technical pattern is emerging as Laramide builds a new uptrend.

Laramide Resources found a bottom at $9.21 and consolidated for a while before beginning to make a turnaround and forming a rounded bottom. A rounded bottom formation usually anticipates a change from a down trend to a uptrend. Over the last few months, having fallen over 44%, it was clear that Laramide Resources was in a short term downtrend. Now, however, it appears to have changed direction and as the rounded bottom indicated and as we predicted, Laramide is now moving into an uptrend.

Laramide Resources has its flagship project is Queensland, Australia where uranium mining is not yet permitted. However this may be changing, Please read our recent Queensland Update and John Howard article for more details. The fact that uranium mining is not allowed, puts many investors off Laramide, but we are confident that uranium mining will eventually be allowed. Since the beginning of 2005, Laramide is up nearly 1000% and in the last year, despite the dramatic 44% correction Laramide Resources is still showing s gain of nearly 100%!

Australia still had the Three Mines Policy while Laramide made those gains and we think that Laramide will continue to make large gains even if the policy stays in place, as investors we think that eventually the government will allow uranium mining. We continue to own Laramide Resources and keep it as a BUY in out Uranium Stocks Portfolio.

Laramide Resources trades as LAM on the TSX.