Merv’s Weekly Uranium Index
The Merv’s Weekly Uranium Index closed the week with a weekly gain of 9.86%. There were 36 gainers, 12 losers and 2 unchanged stocks during the week. Of the five largest stocks by market value, Cameco lost 8.9%, Denison gained 2.3%, Paladin gained 5.6%, UEX gained 8.8% and Uranium One lost 11.2%. The best weekly performer was Xemplar Energy with a gain of 45.5% while the biggest loser on the week was Max Resources with a loss of 15.2%.
Based upon the weekly chart, the long term position of the uranium stocks has still not recovered enough to be rated as bullish. The Index closed the week just below its long term moving average line and the line remains pointing negatively, although very slightly so. The long term momentum indicator has crossed into the positive zone for an advance warning that the Index itself just might follow suit very soon. With a positive momentum reading I cannot rate the long term as still bearish but it is not yet bullish. The rating will remain as – NEUTRAL which was last week’s rating. This is one level above a bearish rating.
Using the weekly Index the intermediate term gives us a whole different picture. The Index is above its intermediate term moving average line and the line has turned decisively upward. The intermediate term momentum indicator is in the positive zone and pointing upward. The intermediate term rating continues as a BULLISH rating.
Merv’s Daily Uranium Index (see the index in Thursday’s commentary)
The Merv’s Daily Uranium Index closed Friday on a very good note. It was up 0.180 points or 3.65%. Of the 50 Index component stocks there were 29 winners on Friday, 15 losers and 6 going nowhere. Of the five largest stocks by market value, Cameco closed higher by 3.4%, Denison closed lower by 3.1%, Paladin closed lower by 1.3%, UEX closed higher by 5.3% and Uranium One closed higher by 1.9%. The best daily performer was Energy Fuels with a daily gain of 21.8% while the worst daily performer was Max Resources with a loss of 9.7%.
The uranium stocks, in general, are having a good and glorious time of it. They are well above their intermediate term moving average line with a momentum indicator that continues higher inside its positive zone. The only cautionary indicator is the volume indicator. Ever since April it has traced a lateral path except for a couple week plunge during the Aug fiasco. It would be great if the volume picked up on up trading days. Lastly, the Index and momentum indicator have been trapped inside up trending channels for over two and a half months now. As long as they remain inside their channels, or break above, there is no worry from the intermediate term.
I can only rate the intermediate term for uranium stocks as BULLISH.
On the short term all is pretty good, not great but pretty good. The Index is above a positive moving average and the momentum indicator is positive. The caution here is the momentum indicator. Although positive the indicator has been in and out of the overbought zone. This might suggest some weakening in the level of strength in the recent Index move and a warning of a possible short term reversal ahead. Still, as long as the trend and indicators are positive I must continue with the BULLISH rating. This would change should the Index reverse and drop below the short term moving average line.
The Merv’s Weekly Uranium Index closed the week with a weekly gain of 9.86%. There were 36 gainers, 12 losers and 2 unchanged stocks during the week. Of the five largest stocks by market value, Cameco lost 8.9%, Denison gained 2.3%, Paladin gained 5.6%, UEX gained 8.8% and Uranium One lost 11.2%. The best weekly performer was Xemplar Energy with a gain of 45.5% while the biggest loser on the week was Max Resources with a loss of 15.2%.
Based upon the weekly chart, the long term position of the uranium stocks has still not recovered enough to be rated as bullish. The Index closed the week just below its long term moving average line and the line remains pointing negatively, although very slightly so. The long term momentum indicator has crossed into the positive zone for an advance warning that the Index itself just might follow suit very soon. With a positive momentum reading I cannot rate the long term as still bearish but it is not yet bullish. The rating will remain as – NEUTRAL which was last week’s rating. This is one level above a bearish rating.
Using the weekly Index the intermediate term gives us a whole different picture. The Index is above its intermediate term moving average line and the line has turned decisively upward. The intermediate term momentum indicator is in the positive zone and pointing upward. The intermediate term rating continues as a BULLISH rating.
Merv’s Daily Uranium Index (see the index in Thursday’s commentary)
The Merv’s Daily Uranium Index closed Friday on a very good note. It was up 0.180 points or 3.65%. Of the 50 Index component stocks there were 29 winners on Friday, 15 losers and 6 going nowhere. Of the five largest stocks by market value, Cameco closed higher by 3.4%, Denison closed lower by 3.1%, Paladin closed lower by 1.3%, UEX closed higher by 5.3% and Uranium One closed higher by 1.9%. The best daily performer was Energy Fuels with a daily gain of 21.8% while the worst daily performer was Max Resources with a loss of 9.7%.
The uranium stocks, in general, are having a good and glorious time of it. They are well above their intermediate term moving average line with a momentum indicator that continues higher inside its positive zone. The only cautionary indicator is the volume indicator. Ever since April it has traced a lateral path except for a couple week plunge during the Aug fiasco. It would be great if the volume picked up on up trading days. Lastly, the Index and momentum indicator have been trapped inside up trending channels for over two and a half months now. As long as they remain inside their channels, or break above, there is no worry from the intermediate term.
I can only rate the intermediate term for uranium stocks as BULLISH.
On the short term all is pretty good, not great but pretty good. The Index is above a positive moving average and the momentum indicator is positive. The caution here is the momentum indicator. Although positive the indicator has been in and out of the overbought zone. This might suggest some weakening in the level of strength in the recent Index move and a warning of a possible short term reversal ahead. Still, as long as the trend and indicators are positive I must continue with the BULLISH rating. This would change should the Index reverse and drop below the short term moving average line.
No comments:
Post a Comment