Merv’s Weekly Uranium ReviewIt was not the best of weeks for uranium stocks. Merv’s Weekly Uranium Index closed the week with a loss of 4.9%. There were 10 stocks advancing, 37 stocks declining and 3 that remained unchanged. Of the five largest uranium stocks by market value, Cameco gained 0.3%, Denison lost 11.9%, Paladin lost 2.0%, UEX lost 9.6% and Uranium One lost 12.0%. Not a good week by far. The best performer on the week was Anglo-Canadian Uranium with a gain of 36.7% so all was not lost. The worst performer was Alberta Star Development with a loss of 23.0%. One final piece of information, taken from the Uranium Table posted earlier, is the summation of individual ratings for each time period which gives us another indication of the bullish or bearish position of the overall uranium stocks. Here, the short term is basically in a transition and neither bull nor bear is in control (the bull was in control last week with a BULL 69% rating). In the intermediate term the bull is still in control with an overall BULL rating of 61%. On the long term the bear is still in control with an overall rating of BEAR 57%.
Long term things are still not settled as far as bull or bear market are concerned. The Index closed the week just a hair below its long term moving average line and the line remains in a negative slope. The long term momentum has moved into its positive zone but not too enthusiastically. On the long term the best rating I can give the Index is a – NEUTRAL rating, one level above a full bear.
On the intermediate term things are still looking a lot better. We do have an up trending channel in this Index as we have in the Daily Index but the difference is in the location of the Index within the channel. Where on the Daily Index the Index is sitting almost on top of the lower support line, on the Weekly Index the Index is about mid-way inside the channel. In any event, still inside the channel and no problem intermediate term wise. In addition, the Index remains above its positive moving average line and momentum remains in the positive zone. All is well as far as the intermediate term is concerned so the Index is rated as BULLISH.
Going to the Merv’s Daily Uranium Index for a short term market assessment, we see that the Index closed on Friday below its short term moving average line and the line has already turned downward. However, both momentum indicators, the 13 Day RSI and the more aggressive Stochastic Oscillator, are still in their positive zones but heading towards the negative at a quick pace. Another day and both may be inside their negative zones. I will continue with my previous rating for the short term as BEARISH.
For now, despite the intermediate term still being rated as bullish I would be inclined to suggest that investors hold back any new commitments until the short term turns around.
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