After The Close, 05 Jan 2009
Merv’s Daily Uranium Index
Market Data
Open: 142.66
High: 151.79
Low: 137.42
Close: 147.07
Volume: 11375
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
The rally continues. Today, we see what that point and figure chart looks like. The break-out from that previous box pattern is evident but from a point and figure point of view, and particularly from my criteria for a point and figure reversal, there is still a problem. That problem is the down trend line and the need to breach it for a reversal to be confirmed. Ever since the last reversal to the down side at the 460 level we have not had the two criteria that I need to call a point and figure reversal. Those are a move above two previous highs (Xs) and a move above the down trend line. On two previous occasions we have had breaks above two Xs but the down trend line remained unbroken for a confirmation. So, what do we assume from this latest break?
The consolidation pattern from which this break came was far more extensive than the previous periods and therefore this upside break is far more significant. The first previous break (at the 360 level) was not confirmed by the normal indicators. The second break (at the 300 level) did seem to be confirmed by the indicators except that the volume indicator was not moving upwards with the Index as it should have been. The momentum indicator remained in its negative zone in this previous break. This time we are only a micro-hair from going positive (the momentum is at 49.96, just .04 from the positive zone). Although I am going with the normal charts and indicators here to say we are in an intermediate term bull market that point and figure non-confirmation must be kept in mind until it too confirms.
Intermediate and short term there has been no change to speak off in the Index or ratings. See the week-end analysis. Both time periods remain BULLISH.
The only indicator that is starting to concern me is the Stochastic Oscillator. It is in the overbought zone from which reactions occur. It is also flattening out and zeroing in on its trigger line for a possible move below the trigger. This seems to suggest that the rally is running out of temporary steam and we just might see a rest period or even a short term reversal of activities in the near future. After all, nothing goes up or down without a rest or reaction. However, at this time any such rest or reaction would most likely be a time to get in on the bull at slightly lower prices.
Merv’s Daily Uranium Index
Market Data
Open: 142.66
High: 151.79
Low: 137.42
Close: 147.07
Volume: 11375
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
The rally continues. Today, we see what that point and figure chart looks like. The break-out from that previous box pattern is evident but from a point and figure point of view, and particularly from my criteria for a point and figure reversal, there is still a problem. That problem is the down trend line and the need to breach it for a reversal to be confirmed. Ever since the last reversal to the down side at the 460 level we have not had the two criteria that I need to call a point and figure reversal. Those are a move above two previous highs (Xs) and a move above the down trend line. On two previous occasions we have had breaks above two Xs but the down trend line remained unbroken for a confirmation. So, what do we assume from this latest break?
The consolidation pattern from which this break came was far more extensive than the previous periods and therefore this upside break is far more significant. The first previous break (at the 360 level) was not confirmed by the normal indicators. The second break (at the 300 level) did seem to be confirmed by the indicators except that the volume indicator was not moving upwards with the Index as it should have been. The momentum indicator remained in its negative zone in this previous break. This time we are only a micro-hair from going positive (the momentum is at 49.96, just .04 from the positive zone). Although I am going with the normal charts and indicators here to say we are in an intermediate term bull market that point and figure non-confirmation must be kept in mind until it too confirms.
Intermediate and short term there has been no change to speak off in the Index or ratings. See the week-end analysis. Both time periods remain BULLISH.
The only indicator that is starting to concern me is the Stochastic Oscillator. It is in the overbought zone from which reactions occur. It is also flattening out and zeroing in on its trigger line for a possible move below the trigger. This seems to suggest that the rally is running out of temporary steam and we just might see a rest period or even a short term reversal of activities in the near future. After all, nothing goes up or down without a rest or reaction. However, at this time any such rest or reaction would most likely be a time to get in on the bull at slightly lower prices.
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