After the Close, 19 Feb 2008
It was another up day for uranium stocks but not a very enthusiastic one. For the past three trading days the Merv’s Daily Uranium Index closed just about where it opened, and very near the average point of the daily trading range. This suggests that speculators are not sure which way to go and are hedging their bets. It is also, unfortunately, more indicative of a trend top than a trend continuation. I would not be too surprised to see the Index turn back down and head towards new lows. There are still those lower projections from the P&F chart with the next one being at the 2.70 level. What we need to see is for the Index to make a sharp move to the up side, none of these 0.5% moves but 2% or higher, and break through the previous short term resistance levels with ease.
Back to reality. The Index closed higher but not that it is noticeable on the chart. The Index was up 0.029 points or 0.87%. There were 30 winners at the close and 14 losers. Six stocks closed unchanged. Cameco closed higher by 1.9%, Denison closed higher by 0.4%, First Uranium closed lower by 3.0%, Paladin closed unchanged and Uranium One closed higher by 1.1%. The best daily performer was Powertech Uranium with a gain of 27.4% while Xemplar was the bummer of the day with a loss of 8.9%.
The intermediate term remains as it had for the past many days. The Index is still below its negatively sloping moving average line but they are closing their gap. The momentum indicator continues in its negative zone but above its positive sloping trigger line. The gap between the two is closing as the indicator is starting to turn towards the down side. The volume indicator remains above its trigger line and the trigger has now turned to the up side. I still must rate the intermediate term as BEARISH, at least for another day. We’ll see if anything might change tomorrow.
On the short term the Index is still above its positive sloping moving average line. The momentum indicator is reaching to try and break above its neutral line but unfortunately it is turning towards the down side and another day of lack luster action and it may get to pointing downward. It still remains above its positive sloping trigger line. The volume indicator remains above its positive sloping trigger line. The more aggressive Stochastic Oscillator has topped out for now and is heading lower. It has moved slightly below its trigger line but the line has not yet turned downward. All in all, the short term rating remains BULLISH.
It was another up day for uranium stocks but not a very enthusiastic one. For the past three trading days the Merv’s Daily Uranium Index closed just about where it opened, and very near the average point of the daily trading range. This suggests that speculators are not sure which way to go and are hedging their bets. It is also, unfortunately, more indicative of a trend top than a trend continuation. I would not be too surprised to see the Index turn back down and head towards new lows. There are still those lower projections from the P&F chart with the next one being at the 2.70 level. What we need to see is for the Index to make a sharp move to the up side, none of these 0.5% moves but 2% or higher, and break through the previous short term resistance levels with ease.
Back to reality. The Index closed higher but not that it is noticeable on the chart. The Index was up 0.029 points or 0.87%. There were 30 winners at the close and 14 losers. Six stocks closed unchanged. Cameco closed higher by 1.9%, Denison closed higher by 0.4%, First Uranium closed lower by 3.0%, Paladin closed unchanged and Uranium One closed higher by 1.1%. The best daily performer was Powertech Uranium with a gain of 27.4% while Xemplar was the bummer of the day with a loss of 8.9%.
The intermediate term remains as it had for the past many days. The Index is still below its negatively sloping moving average line but they are closing their gap. The momentum indicator continues in its negative zone but above its positive sloping trigger line. The gap between the two is closing as the indicator is starting to turn towards the down side. The volume indicator remains above its trigger line and the trigger has now turned to the up side. I still must rate the intermediate term as BEARISH, at least for another day. We’ll see if anything might change tomorrow.
On the short term the Index is still above its positive sloping moving average line. The momentum indicator is reaching to try and break above its neutral line but unfortunately it is turning towards the down side and another day of lack luster action and it may get to pointing downward. It still remains above its positive sloping trigger line. The volume indicator remains above its positive sloping trigger line. The more aggressive Stochastic Oscillator has topped out for now and is heading lower. It has moved slightly below its trigger line but the line has not yet turned downward. All in all, the short term rating remains BULLISH.
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