We all know that Aura at its current market cap is fundamentally...

We all know that Aura at its current market cap is fundamentally undervalued relative to its peers. I feel that this is about to change rapidly as the technical picture has just become a whole lot brighter.

Here is a zoomed in weekly chart. You can see that there has been a significant moving average cross where the 30 Week Ema has crossed the 100 Week EMA (highlighted by the pink arrow) - This is a long term indicator and signals a longer term trend change.

In addition to this the stock has closed above 3.4cents on the weekly chart which it failed to do on 6 occasions since October thereby signalling a breakout of resistance.



To illustrate the significance of this cross I have included the longer term weekly chart. Note that every time that this moving average cross has happened in the past the AEE share price has gone absolutely ballistic.

Note the pink arrows - The last time the moving averages crossed up was in late 2010 so this is not an indicator that gives off a buy signal every couple of months. Note the monster increases in the share price the previous 2 times the cross has occurred!




The improved technical picture  coupled with the fact that AEE seems to have under performed relative to its peers in the recent uranium re-rating leads me to believe that the stock is due for a serious re-rating. With PDN going up 30% on Friday this should further shine a spotlight on the whole sector as sentiment toward uranium companies continues to improve.
With the second biggest Uranium deposit in the world and also 50 million pounds in Mauritania which could be producing in the next couple of years, i think you would be hard pressed to find a better leverage play to uranium on the ASX. If the Uranium price continues to march upwards price history shows that when this stock moves the gains are fast and violent.

Just my thoughts