FRG – Fronteer Development Group

Recommendation: Hold

This chart can teach us a lot. It teaches us that when a stock makes a new high after a period of consolidation, you should buy it.

The red line shows the high back in April, and then a period of consolidation until that level was breached again back in early November. That’s when you buy.

If you had bought Fronteer around $8 at the beginning of the month, you would now be very happy that it closed at $11.16 on Friday.

Obviously the biggest part of the move has already happened, but I’m holding until I have a reason to sell (ie. when the uptrend line is broken). The MACD is now very high, which is why I’m postponing any new buying at this time.

However, Fronteer Development Group and Pintetree are my two biggest holdings, so I’m still long term bullish on this stock.