After The Close, 05 March 2008
In my FAN PRINCIPLE method of drawing the FAN trend lines it is not unusual for the price action to halt and reverse when coming to one of the lines. The other thing that often happens is that the price action hugs the line for awhile before crossing. This looks like what it might be doing at the present time, similar to the late January period when the price tried a reversal to the up side, hugged the line downward for awhile and then continued its move. At least let’s hope that’s what it is doing and not reacting downward towards the second line, which would be some 30% below the present close.
Today was an up day for the Index. The Merv’s Daily Uranium Index closed higher by 0.044 points or 1.27%. There were 31 gainers, 14 losers and 5 stocks going nowhere. Of the largest five, Cameco gained 1.1%, Denison gained 2.6%, First Uranium gained 3.5%, Paladin gained 1.4% and the one loser was Uranium One with a loss of 2.0%. The best performer on the day was Strathmore Minerals with a gain of 14.1% while the worst performer was Magnum Uranium with a loss of 9.5%.
The Index close was still below its intermediate term negative sloping moving average line. The momentum indicator once more is above its trigger line, if only very slightly, but still in its negative zone. The trigger line itself remains in a positive slope. I still need a little more improvement in these indicators before I can reverse my intermediate term rating. It remains BEARISH for another day.
The short term prognosis is in a state of flux. The Index closed just below its short term moving average line but the line slope remains slightly positive. The short term momentum, which yesterday was negative, is once more in its positive zone, but still below its negatively sloping trigger line. The aggressive Stochastic Oscillator remains in its negative zone below its negative trigger line. With all these positives and negatives, aboves and belows one could get quite confused. That’s why I rely upon my proprietary technique of combining all this into a rating, and for the short term I am coming up with a – NEUTRAL rating, which is one level above a full bearish rating.
Things are yet quite unsettled. Depending upon your risk level one might want to gamble here but my view would be to ensure the trend is in your direction before jumping in.
In my FAN PRINCIPLE method of drawing the FAN trend lines it is not unusual for the price action to halt and reverse when coming to one of the lines. The other thing that often happens is that the price action hugs the line for awhile before crossing. This looks like what it might be doing at the present time, similar to the late January period when the price tried a reversal to the up side, hugged the line downward for awhile and then continued its move. At least let’s hope that’s what it is doing and not reacting downward towards the second line, which would be some 30% below the present close.
Today was an up day for the Index. The Merv’s Daily Uranium Index closed higher by 0.044 points or 1.27%. There were 31 gainers, 14 losers and 5 stocks going nowhere. Of the largest five, Cameco gained 1.1%, Denison gained 2.6%, First Uranium gained 3.5%, Paladin gained 1.4% and the one loser was Uranium One with a loss of 2.0%. The best performer on the day was Strathmore Minerals with a gain of 14.1% while the worst performer was Magnum Uranium with a loss of 9.5%.
The Index close was still below its intermediate term negative sloping moving average line. The momentum indicator once more is above its trigger line, if only very slightly, but still in its negative zone. The trigger line itself remains in a positive slope. I still need a little more improvement in these indicators before I can reverse my intermediate term rating. It remains BEARISH for another day.
The short term prognosis is in a state of flux. The Index closed just below its short term moving average line but the line slope remains slightly positive. The short term momentum, which yesterday was negative, is once more in its positive zone, but still below its negatively sloping trigger line. The aggressive Stochastic Oscillator remains in its negative zone below its negative trigger line. With all these positives and negatives, aboves and belows one could get quite confused. That’s why I rely upon my proprietary technique of combining all this into a rating, and for the short term I am coming up with a – NEUTRAL rating, which is one level above a full bearish rating.
Things are yet quite unsettled. Depending upon your risk level one might want to gamble here but my view would be to ensure the trend is in your direction before jumping in.
1 comment:
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