After The Close, 25 Oct 2007The market action continues to make uranium stocks look good. The Merv’s Daily Uranium Index closed up on the day by 0.102 points or 2.20%. There were 29 winners, 12 losers and 9 unchanged for a better than 2 to 1 ratio on the up side. Cameco closed up 3,2%, Denison closed up by 1.7%, Paladin closed down by 1.6%, UEX closed up by 2.1% and Uranium One closed up by 1.9%. The best performer on the day was Forsys Metals with a gain of 20.3% while the worst performer was Northern Continental with a loss of 7.7%.
The Index remains inside the up trending channel so no problem yet. It is presently almost in the middle of the band so we can guess that we have at least a few days where it will stay trapped, even should the Index turn around. For now the Index continues to trade above its intermediate term moving average line with the line continuing to turn more aggressively upwards. Momentum continues in its positive zone and moving higher. The volume indicator, however, continues to trace more of a lateral trend as opposed to up or down. We could use a little more strength here. However, that does not detract from a BULLISH rating for the intermediate term.
What I’ve said for the intermediate term may be repeated for the short term. BULLISH rating here also.
An interesting note. The Index had been in a gentle downward sloping channel for four months earlier, before plunging through the lower line. The recent rally has taken the Index back into that channel again. So, the Index is now under the influence of two channels, an upward trending channel and a downward trending channel. Which one will now take over? We’ll just have to wait and see.
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