After the Close, 21 Nov 2007
The MACD (Moving Average Convergence/Divergence)
For a momentum indicator I prefer the Relative Strength Index (RSI) based upon a time period appropriate to the period being analyzed. However, I do show other indicators from time to time. Probably the most popular momentum indicator is the MACD. The MACD, however, has preset parameters. When used with a daily chart I find the MACD to be appropriate somewhere between the short term and the intermediate term. There are two main features of the MACD. One is the crossing by the MACD of its trigger line (shown as a black line on the chart). The other feature is the crossing of the zero neutral line. I just show the MACD here as it is so popular. My analysis is, however, based upon the appropriate time period RSI.
I wish I could provide some joy to uranium investors but there just ain’t any. The Merv’s Daily Uranium Index closed lower again, by 0.152 points or 3.48%. The negativity shows up in the daily winners and losers information. There were only 6 winners, and only minor ones at that. There were 39 losers and 5 unchanged. Of the top five stocks by market value, all were losers. Cameco lost 3.6%, Denison lost 3.8%, Paladin lost 6.1%, UEX lost 4.1% and Uranium One lost 4.4%. The best winner of the 50 Index stocks was UNOR Inc. with only a 3.9% gain while the worst loser was Energy Fuels with a loss of 12.8%.
We can demolish the intermediate term real fast. Index below a now negative moving average line, momentum in the negative zone and pointing downward, volume starting to show weakness, all indicators are in place to continue the BEARISH rating for the intermediate term.
The short term can be just as quickly demolished. The Index closing at a new reaction low and below its negative sloping moving average line, momentum in its negative zone and pointing lower and the volume indicator below its trigger line. All are in place for a continuation of the BEARISH rating here too. The momentum indicator has just inched into its oversold zone so although this is not yet an indication of a reversal ahead it does tell us that any short sales here are fraught with extra risk as you might be close to a bottom.
This is a period where no new commitments, long or short, should be contemplated.
The MACD (Moving Average Convergence/Divergence)
For a momentum indicator I prefer the Relative Strength Index (RSI) based upon a time period appropriate to the period being analyzed. However, I do show other indicators from time to time. Probably the most popular momentum indicator is the MACD. The MACD, however, has preset parameters. When used with a daily chart I find the MACD to be appropriate somewhere between the short term and the intermediate term. There are two main features of the MACD. One is the crossing by the MACD of its trigger line (shown as a black line on the chart). The other feature is the crossing of the zero neutral line. I just show the MACD here as it is so popular. My analysis is, however, based upon the appropriate time period RSI.
I wish I could provide some joy to uranium investors but there just ain’t any. The Merv’s Daily Uranium Index closed lower again, by 0.152 points or 3.48%. The negativity shows up in the daily winners and losers information. There were only 6 winners, and only minor ones at that. There were 39 losers and 5 unchanged. Of the top five stocks by market value, all were losers. Cameco lost 3.6%, Denison lost 3.8%, Paladin lost 6.1%, UEX lost 4.1% and Uranium One lost 4.4%. The best winner of the 50 Index stocks was UNOR Inc. with only a 3.9% gain while the worst loser was Energy Fuels with a loss of 12.8%.
We can demolish the intermediate term real fast. Index below a now negative moving average line, momentum in the negative zone and pointing downward, volume starting to show weakness, all indicators are in place to continue the BEARISH rating for the intermediate term.
The short term can be just as quickly demolished. The Index closing at a new reaction low and below its negative sloping moving average line, momentum in its negative zone and pointing lower and the volume indicator below its trigger line. All are in place for a continuation of the BEARISH rating here too. The momentum indicator has just inched into its oversold zone so although this is not yet an indication of a reversal ahead it does tell us that any short sales here are fraught with extra risk as you might be close to a bottom.
This is a period where no new commitments, long or short, should be contemplated.
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