After The Close, 01 Apr 2009
Merv’s Daily Uranium Index
Market Data
Open: 140.42
High: 146.34
Low: 137.06
Close: 144.15
Volume: 4163
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
I guess it was time to show the point and figure (P&F) chart again just to remind you what this one chart/indicator is telling us. The last CONFIRMED signal that this chart had given us was a bear market signal some time back and with that were a couple of projections. Only one has not yet been met and that was all the way down to the 50 level. The most recent action shows an upside break out at 140, above a resistance level. A projection to the 300 level is also calculated. However, I require two things for a CONFIRMED reversal. A break above two previous Xs (which we have) but also a move above the basic down trend line, which we do not yet have. So, we’ve got a bullish break-out but not yet a confirmed turn around as far as the P&F chart is concerned. I have long learned that trading without confirmation from the P&F chart is taking extra risk but not necessarily that it is in the wrong direction. That knowledge will come when the down trend line is broken or the Index moves into lower levels. In the mean time I guess we just go back to our usual charts and indicators to understand where these are telling us that we are.
Well, it was a good day, not a great one but okay. The Merv’s Daily Uranium Index closed up 3.26 points or 2.31%. There were 21 winners, 17 losers and 12 going nowhere. I’d like to see those that are going nowhere smarten up and decide where they want to go. I usually don’t like to see such indecision. As for those five largest stocks, there was no indecision from them, they were all on the up side. Cameco gained 3.8%, First Uranium gained 0.3%, Paladin gained 2.3%, Uranium One gained 4.7% and USEC gained 5.2%. The best winner on the day was Xemplar Energy with a gain of 18.3% while the loser of the day was Quaterra with a loss of 11.8%.
Looking at the intermediate term everything seems to be coming along just fine although not yet too enthusiastically. The Index closed above its intermediate term positive sloping moving average line. The momentum indicator remains in its positive zone and has just moved above its positive trigger line. The volume indicator is still the strongest indicator and is moving upwards again, just about into new high territory. All in all, the intermediate term rating remains BULLISH.
As for the short term, the Index is starting to move away from the moving average line after sitting right on top of it. The moving average remains pointing in an upward direction. The momentum indicator remains in its positive zone but also remains below its negative sloping trigger line. It is moving upwards and could move above the trigger with one more day’s of upside action. The daily volume still leaves a lot to be desired but is what one might expect. We need upside daily volume improvement to go along with the volume indicator positive trend. Anyway, the short term rating remains BULLISH.
Merv’s Daily Uranium Index
Market Data
Open: 140.42
High: 146.34
Low: 137.06
Close: 144.15
Volume: 4163
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
I guess it was time to show the point and figure (P&F) chart again just to remind you what this one chart/indicator is telling us. The last CONFIRMED signal that this chart had given us was a bear market signal some time back and with that were a couple of projections. Only one has not yet been met and that was all the way down to the 50 level. The most recent action shows an upside break out at 140, above a resistance level. A projection to the 300 level is also calculated. However, I require two things for a CONFIRMED reversal. A break above two previous Xs (which we have) but also a move above the basic down trend line, which we do not yet have. So, we’ve got a bullish break-out but not yet a confirmed turn around as far as the P&F chart is concerned. I have long learned that trading without confirmation from the P&F chart is taking extra risk but not necessarily that it is in the wrong direction. That knowledge will come when the down trend line is broken or the Index moves into lower levels. In the mean time I guess we just go back to our usual charts and indicators to understand where these are telling us that we are.
Well, it was a good day, not a great one but okay. The Merv’s Daily Uranium Index closed up 3.26 points or 2.31%. There were 21 winners, 17 losers and 12 going nowhere. I’d like to see those that are going nowhere smarten up and decide where they want to go. I usually don’t like to see such indecision. As for those five largest stocks, there was no indecision from them, they were all on the up side. Cameco gained 3.8%, First Uranium gained 0.3%, Paladin gained 2.3%, Uranium One gained 4.7% and USEC gained 5.2%. The best winner on the day was Xemplar Energy with a gain of 18.3% while the loser of the day was Quaterra with a loss of 11.8%.
Looking at the intermediate term everything seems to be coming along just fine although not yet too enthusiastically. The Index closed above its intermediate term positive sloping moving average line. The momentum indicator remains in its positive zone and has just moved above its positive trigger line. The volume indicator is still the strongest indicator and is moving upwards again, just about into new high territory. All in all, the intermediate term rating remains BULLISH.
As for the short term, the Index is starting to move away from the moving average line after sitting right on top of it. The moving average remains pointing in an upward direction. The momentum indicator remains in its positive zone but also remains below its negative sloping trigger line. It is moving upwards and could move above the trigger with one more day’s of upside action. The daily volume still leaves a lot to be desired but is what one might expect. We need upside daily volume improvement to go along with the volume indicator positive trend. Anyway, the short term rating remains BULLISH.
As for the immediate direction of least resistance, that is getting close to being the up side but I will continue with the lateral for another day. Nothing really solid that says a strong upside move is in progress yet.
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