After The Close, 07 May 2008
Merv’s Daily Uranium Index
Market Data
Open: 276.37
Hugh: 283.51
Low: 270.66
Close: 275.76
Volume: 6121
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
There was no real follow-thru from yesterday’s good showing as the Index closed on the day hardly any ahead. Still, one must remain positive as the day’s action was mostly on the up side. The Index is back inside where the previous “box” was and who knows, we may be back to the frustrations of a continuation of the box lateral trend. There seem to be a lot of possibilities as to where the Index will go from here.
The Merv’s Daily Uranium Index closed up 0.68 points or 0.25%. There were 21 winners, 23 losers and 6 unchanged. All in all, a pretty neutral day. Only one of the five largest stocks made any kind of a move, and that was to the down side. Cameco gained 0.2%, Denison gained 0.9%, First Uranium lost 0.3%, Paladin lost 0.2% and Uranium One lost 2.4%. The best performer on the day was Kodiak Exploration with a gain of 8.3% while the worst performer was Uranium Resources with a loss of 6.6%, again, a very small distance between the best and the worst.
As the chart shows, the Index is coming very close to the intermediate term moving average line. However, it is still below the line and the line is sloping downward. The momentum indicator, although flattening out, remains above its positive sloping trigger line but still inside its negative zone. I may not have mentioned it specifically but if you look at yesterday’s chart you see that the momentum indicator had provided a weak positive divergence at last week’s low versus the low a few weeks earlier. It’s not that strong but still a positive one. For now the intermediate term rating remains BEARISH.
On the short term the Index, although somewhat neutral on the day, is still above its positive moving average line. The momentum indicator remains just below its neutral line, in the negative zone, but above its positive trigger line. The positive divergence is more noticeable with the short term momentum indicator, i.e. today’s chart. Going with the indicators the short term remains BULLISH.
On the immediate or very short term the direction of least resistance still seems to be to the up side but a couple of cautions are noted. First, I never like it when the Index (or a stock) closes below its opening price, even if the final close was still above its previous close. This starts to suggest a reversal of sentiment by speculators, or a suggestion that the original upside move may have been unwarranted. The day’s high just touched that new third FAN trend line (the dashed version) and this may prove to be a deterrent to further upside action. The Index is still above its very short term moving average line and the aggressive Stochastic Oscillator continues its sharp upward trek and is just about to enter its overbought zone. From the indicators I must remain BULLISH on the very short term direction, despite the cautions.
Merv’s Daily Uranium Index
Market Data
Open: 276.37
Hugh: 283.51
Low: 270.66
Close: 275.76
Volume: 6121
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
There was no real follow-thru from yesterday’s good showing as the Index closed on the day hardly any ahead. Still, one must remain positive as the day’s action was mostly on the up side. The Index is back inside where the previous “box” was and who knows, we may be back to the frustrations of a continuation of the box lateral trend. There seem to be a lot of possibilities as to where the Index will go from here.
The Merv’s Daily Uranium Index closed up 0.68 points or 0.25%. There were 21 winners, 23 losers and 6 unchanged. All in all, a pretty neutral day. Only one of the five largest stocks made any kind of a move, and that was to the down side. Cameco gained 0.2%, Denison gained 0.9%, First Uranium lost 0.3%, Paladin lost 0.2% and Uranium One lost 2.4%. The best performer on the day was Kodiak Exploration with a gain of 8.3% while the worst performer was Uranium Resources with a loss of 6.6%, again, a very small distance between the best and the worst.
As the chart shows, the Index is coming very close to the intermediate term moving average line. However, it is still below the line and the line is sloping downward. The momentum indicator, although flattening out, remains above its positive sloping trigger line but still inside its negative zone. I may not have mentioned it specifically but if you look at yesterday’s chart you see that the momentum indicator had provided a weak positive divergence at last week’s low versus the low a few weeks earlier. It’s not that strong but still a positive one. For now the intermediate term rating remains BEARISH.
On the short term the Index, although somewhat neutral on the day, is still above its positive moving average line. The momentum indicator remains just below its neutral line, in the negative zone, but above its positive trigger line. The positive divergence is more noticeable with the short term momentum indicator, i.e. today’s chart. Going with the indicators the short term remains BULLISH.
On the immediate or very short term the direction of least resistance still seems to be to the up side but a couple of cautions are noted. First, I never like it when the Index (or a stock) closes below its opening price, even if the final close was still above its previous close. This starts to suggest a reversal of sentiment by speculators, or a suggestion that the original upside move may have been unwarranted. The day’s high just touched that new third FAN trend line (the dashed version) and this may prove to be a deterrent to further upside action. The Index is still above its very short term moving average line and the aggressive Stochastic Oscillator continues its sharp upward trek and is just about to enter its overbought zone. From the indicators I must remain BULLISH on the very short term direction, despite the cautions.
4 comments:
Any comment on USU?
badly managed shell of a company with no share capital to raise the billions needed to continue as a player in the sector. only chance is if they have connections ot the US govt and the senators and congressmen own shares. just my opinion. plenty of other players planning to build competing facilities.
USU may have bottomed. Technically it's above its IT moving average line but line is still negative. Momentum still negative but climbing higher. Volume still low but may improve. A close above $6 may be significant but great resistance at the $7.50 to $10.00 range. Check Wednesday Daily table for more info.
Thanks, Merv.
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