After The Close, 25 March 2008
Things seem to be looking better and better. Although there have been only two days of upside action they are a lot better than the upside action of a week or so back. I am expecting the Index to take a break once it hits that short term moving average line but only a short break. It should then continue on its way, for how long is unknown at this time. As noted below, the ratings are still unchanged but the immediate direction is encouraging.
The Merv’s Daily Uranium Index closed higher by 0.075 points or 2.69%. There were 31 winners, 12 losers and 7 unchanged. Cameco gained 4.2%, Denison lost 0.1%, First Uranium gained 0.1%, Paladin gained 3.9% and Uranium One gained 1.2%. The best daily performer was Fronteer Development with a gain of 18.5% while the worst performer was Xemplar Energy with a loss of 9.8%.
It will still take another several days for the Index to cross its intermediate term moving average line and some more time after that for the line to turn up, but it looks like things are going in the right direction. Depending upon the market action the momentum indicator could cross its trigger line tomorrow but more likely the following day. It is very close to crossing now. The positive divergence discussed yesterday is proving out but in the intermediate term period it is not a very strong one. The rating remains BEARISH but improving.
On the short term the Index is closing fast on its moving average line. Another day, but more likely two, and it will cross. It would then need another day or two to turn the moving average around but everything is looking in that direction for now. The momentum indicator is suggesting that the move so far has pretty good internal strength. It has now crossed its trigger line, its oversold line and the down trend line shown yesterday. The trigger line is, however, still in a downward slope so another day or two should turn it around. The positive divergence is far more pronounced in the short term (see yesterday’s chart) but it will still be another day or two to really confirm the divergence. It’s going to be important how the Index acts as it touches that short term moving average line. Although I expect it to take a breather at the line it could just go right through toward the intermediate term moving average and the third FAN trend line. The more aggressive Stochastic Oscillator is well on its way towards its neutral line and may cross into the positive zone tomorrow. Its trigger line has turned upwards and is following the Oscillator line. For now the rating remains BEARISH for the short term but that is expected to start changing very soon.
Still not the time for the speculator to be jumping in but it might be the time to be preparing. I have not shown any stock reviews lately as the market was not in a good position for it. Tomorrow I hope to have at least one or two stocks posted.
Things seem to be looking better and better. Although there have been only two days of upside action they are a lot better than the upside action of a week or so back. I am expecting the Index to take a break once it hits that short term moving average line but only a short break. It should then continue on its way, for how long is unknown at this time. As noted below, the ratings are still unchanged but the immediate direction is encouraging.
The Merv’s Daily Uranium Index closed higher by 0.075 points or 2.69%. There were 31 winners, 12 losers and 7 unchanged. Cameco gained 4.2%, Denison lost 0.1%, First Uranium gained 0.1%, Paladin gained 3.9% and Uranium One gained 1.2%. The best daily performer was Fronteer Development with a gain of 18.5% while the worst performer was Xemplar Energy with a loss of 9.8%.
It will still take another several days for the Index to cross its intermediate term moving average line and some more time after that for the line to turn up, but it looks like things are going in the right direction. Depending upon the market action the momentum indicator could cross its trigger line tomorrow but more likely the following day. It is very close to crossing now. The positive divergence discussed yesterday is proving out but in the intermediate term period it is not a very strong one. The rating remains BEARISH but improving.
On the short term the Index is closing fast on its moving average line. Another day, but more likely two, and it will cross. It would then need another day or two to turn the moving average around but everything is looking in that direction for now. The momentum indicator is suggesting that the move so far has pretty good internal strength. It has now crossed its trigger line, its oversold line and the down trend line shown yesterday. The trigger line is, however, still in a downward slope so another day or two should turn it around. The positive divergence is far more pronounced in the short term (see yesterday’s chart) but it will still be another day or two to really confirm the divergence. It’s going to be important how the Index acts as it touches that short term moving average line. Although I expect it to take a breather at the line it could just go right through toward the intermediate term moving average and the third FAN trend line. The more aggressive Stochastic Oscillator is well on its way towards its neutral line and may cross into the positive zone tomorrow. Its trigger line has turned upwards and is following the Oscillator line. For now the rating remains BEARISH for the short term but that is expected to start changing very soon.
Still not the time for the speculator to be jumping in but it might be the time to be preparing. I have not shown any stock reviews lately as the market was not in a good position for it. Tomorrow I hope to have at least one or two stocks posted.
3 comments:
Hi Merv,
Great site. Can you elaborate on the difference between these last two days action and the rally in February (is that the one you said where the action was not as positive?) Are you just saying that these two positive days look better because of the positive divergence?
I am curious because your tone is sounding a bit more optimistic, whereas after the February action you were sounding more negative, correctly calling "topping" action.
Take care
I agree with the comment. You are sounding less negative. I am also curious why these two days are different.
Anonymous & anonymous,
See comment in the main section.
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