Uranium fuelled Santoy Resources rose dramatically yesterday on the back of a $10.00 jump in the price of uranium.

The eagerly awaited results of the sealed bid auction took most analysts by surprise as few were expecting a $10.00 price hike.
Even cavaliers like ourselves were found to be too conservative with our guestimate of $82.50.

Checking our Watch List the largest price jump we saw for a uranium/gold stock was 23.46% by a company called Signet Minerals Incorporated. A company that we don’t know anything about, maybe one of our readers will enlighten us.

Returning to Santoy just take a look at the chart below and note the cup and handle formation. It’s not a perfect formation but usually when we see a chart like this it turns out to be a positive indicator for the stock. No one indicator can ever be relied on to point the way for us however they can be added to the decision process along the way. We also know traders who live and die by what their favourite indicator tells them and they are doing well, so there we go.

Hold on and sweat it out, there is still a long way to go.

24 February 2007