Merv's Daily Commentary, 14 Nov 2007

After the Close, 14 Nov 2007

Another dull uranium trading day but it just might get more interesting. For the day the Merv’s Daily Uranium Index closed up 0.44 points or 0.96%. There were 30 stocks on the up side, 15 stocks on the down side and 5 on no side. As for the performance of the top five stocks by market value, Cameco gained 1.0%, Denison lost 1.7%, Paladin lost 3.8%, UEX gained 7.2% and Uranium One gained 0.5%. Another mixed day. The best performer today was Max Res. with a gain of 13.9% while the worst performer was Consolidated Abaddon with a loss of 6.5%.

The daily action is getting interesting. The last two days were dull but that’s what we often get prior to a trend reversal. On the short term these last two days look very much like those in early October. One might then be expecting some upside activity pretty darn soon. However, there is a slight difference with that October activity. Again, looking at the two candlesticks for the past two days one observes that on both days the closing price was lower than the opening price, unlike the October days where the close was higher than the open. Whether this is significant or not, I’m not too sure. Only time will tell. This is all in trying to predict the next day’s action. As for where the Index (and uranium stocks) stand at the present, from a short term perspective, that’s easy. The Index is still below its short term moving average line and the line is pointing lower. The short term momentum (shown) is still below its neutral line although starting to turn up towards the line. For now the short term can only be rated as BEARISH but with the early hints of a reversal ahead.

The intermediate term is also easy. The Index remains above its intermediate term moving average line and the line continues to point upward. The momentum indicator which had been very slightly negative has now moved into the very slightly positive position. Although the daily volume is unimpressive the cumulative effect as viewed on the volume indicator is more on the positive side. With all that I can upgrade the intermediate term rating to + NEUTRAL with another upgrade tomorrow if we have another plus day in the Index.