Merv’s Daily Uranium Index
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
Another little notch down but really not going anywhere yet. The Daily Index is sitting almost on top of the third FAN trend line. It would not take much more downside action to get the Index back inside the third and second FANS area and nullify the bullish confirmation of a few days back. There are those who would look at this chart and say we have a reverse head and shoulder pattern in the making. All it would take is to break above the neckline, the 180 level, and we’re on our way. Well, I’m still not too convinced that we have a good reverse H&S pattern but even if we do, the upside breaking and confirming the pattern would only project the move to the 197/199 area. A decent move but not what one would like for a bull market. The P&F chart is better at projecting a move, and that projects to the 300 level for now. A better move to look forward to. Now, if only the Index would break that red line to the up side.
The Merv’s Daily Uranium Index closed a little lower again today but only by 1.21 points or 0.69%. There were 16 winners, 25 losers and 9 stocks confused as to which way to go. None of the five largest stocks were winners today. Cameco lost 0.9%, First Uranium lost 2.1%, Paladin lost 1.0%, Uranium One lost 1.4% and USEC was one of those confused. The best winner on the day was RPT Uranium with a gain of 15.2% while the worst performer was Uranerz Energy with a loss of 9.0%.
With the minor moves in the Daily Index the various indicators are doing nothing. Both on the short and intermediate term nothing has changed yet again so both time periods ratings remain as BULLISH.
I think I will rethink my immediate direction of least resistance and go back to the tried and true lateral direction. One can almost not go wrong with that one.
The week-end should see a more complete analysis of the indicators and ratings.