After The Close, 21 May 2009
Merv’s Daily Uranium Index
Market Data
Open: 182.44
High: 184.62
Low: 175.00
Close: 179.44
Volume: 7158
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 know, it might be early yet to be drawing those “box” lines but us technicians just can’t resist drawing a line whenever we get the chance. Anyway, that just might be a “box” situation giving us an upper and lower levels which could trap the trading for the next week, month or longer. I doubt it however. Although the price of uranium stayed steady this past week it is up a considerable amount over the past few weeks which just might keep the stocks from getting too bearish. If the support of the “box” does not hold I see the Index dropping to the 160 level.
The Merv’s Daily Uranium Index closed lower by 4.64 points or 2.52%. There were 13 winners, 31 losers and 6 confused stocks not knowing where to go. All five of the largest stocks were in the losers category today. Cameco lost 4.5%, First Uranium lost 2.1%, Paladin lost 2.5%, Uranium One lost 6.3% and USEC lost 2.6%. The best winner was Strathmore Minerals with a gain of 11.1% while the loser of the day was Quaterra with a loss of 9.4%. One might take some comfort in that although we had 31 losers none could make it into the double digit loss level.
Nothing has changed from the intermediate term perspective so I’ll just cut to the chase and rate the intermediate term as continuing BULLISH.
On the short term the Index and moving average are on top of each other and any change in direction changes the moving average. Today, the Index closed below the moving average line and the line has again turned downward. This is one of those occasions when whip-saw effects continue until the Index runs away from the moving average line in one direction. The momentum indicator remains in its positive zone although it is below its negative trigger line. The short term is back to the BEARISH camp with this action.
As for the direction of least resistance, I’m sticking with the lateral. The action today suggested that maybe the Index is not ready for any further downside and may be more interested in a lateral move.
Merv’s Daily Uranium Index
Market Data
Open: 182.44
High: 184.62
Low: 175.00
Close: 179.44
Volume: 7158
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 know, it might be early yet to be drawing those “box” lines but us technicians just can’t resist drawing a line whenever we get the chance. Anyway, that just might be a “box” situation giving us an upper and lower levels which could trap the trading for the next week, month or longer. I doubt it however. Although the price of uranium stayed steady this past week it is up a considerable amount over the past few weeks which just might keep the stocks from getting too bearish. If the support of the “box” does not hold I see the Index dropping to the 160 level.
The Merv’s Daily Uranium Index closed lower by 4.64 points or 2.52%. There were 13 winners, 31 losers and 6 confused stocks not knowing where to go. All five of the largest stocks were in the losers category today. Cameco lost 4.5%, First Uranium lost 2.1%, Paladin lost 2.5%, Uranium One lost 6.3% and USEC lost 2.6%. The best winner was Strathmore Minerals with a gain of 11.1% while the loser of the day was Quaterra with a loss of 9.4%. One might take some comfort in that although we had 31 losers none could make it into the double digit loss level.
Nothing has changed from the intermediate term perspective so I’ll just cut to the chase and rate the intermediate term as continuing BULLISH.
On the short term the Index and moving average are on top of each other and any change in direction changes the moving average. Today, the Index closed below the moving average line and the line has again turned downward. This is one of those occasions when whip-saw effects continue until the Index runs away from the moving average line in one direction. The momentum indicator remains in its positive zone although it is below its negative trigger line. The short term is back to the BEARISH camp with this action.
As for the direction of least resistance, I’m sticking with the lateral. The action today suggested that maybe the Index is not ready for any further downside and may be more interested in a lateral move.
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