Much of the resource sector appears to be in a basing pattern right now – gold, uranium, juniors in general, even coal stocks. While the easy money is made on the first bounce from these patterns (usually big moves in percentage terms), the serious money is generally made after the breakout. The first bounce in the uranium and gold stocks is over, but the real breakout has not yet occurred in either sector. So for more cautious investors, there is plenty of time to catch the main wave - moves after a long base tend to be quite strong. Cautious investors should wait for the breakout, since there is always the possibility that a basing pattern could be a consolidation pattern in disguise – with another leg down in the works. I don't believe this is the case with the resource stocks, but the possibility can't be ignored.

Currently, gold stocks appear to need a little more to-ing and fro-ing before they have a true breakout, but uranium stocks look like they could start a move fairly soon. The basing pattern in the uranium sector just looks more mature than that of the PMs or coal. Doesn't mean it will happen right away, a lot depends on the general market and possibly the timing of a new catalyst for uranium.