a chartists eye view, page-36

Below is a chart of the uranium price with PDN price below it.
Before the "nit pickers" get flustered, let me just say that i deliberately did not superimpose one price over the other, it was simpler to display the divergences using this approach.

Regarding the divergences you can see that active traders in this stock could have done well using this "long only" approach, but the approach would have not done so well if support prices in PDN were used exclusively.
Always look at the underlying commodity when trading commodity stocks.

Ideally we would like to see a stock holding support, but commodity stocks tend to overshoot to the upside and downside when sentiment takes over.

This is NOT a recommendation