After The Close, 26 Aug 2009
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.
Apologies for missing yesterday. I still have a problem with my basic downloading software but got my alternate up to speed so can at least post the commentaries.
Yesterday was a slightly lower day and today was another one. It does look like the Index is finding a support, which just happens to be slightly above the 200 DMAw line. We’ll see if tomorrow will continue the down days or if the support will be holding and the Index may start a rebound. Except for a few days in early July the Index has really been tracking a lateral path, and today’s action remains in such path. Strength is being built while in this path, but for which direction? Usually, the volume indicator will hold up pretty well if the result was to be the up side but now the volume indicator is starting to break on the down side. It has moved below its level from the past three months. Slowly, speculators are starting to lose faith. This is something that needs closer watching.
The Merv’s Daily Uranium Index closed lower by 1.00 points or 0.59%. There were 19 winners, 24 losers and 7 going nowhere. Most of the five largest stocks were losers. Cameco lost 1.3%, First Uranium lost 0.7%, Paladin, the one biggie winner, gained 2.0%, Uranium one lost 1.9% and Uranium Participation lost 0.7%. The best winner on the day was US Energy with a gain of 31.8% while the loser on the day was Wescan Goldfields with a loss of 13.0%.
None of the intermediate term indicators are any good. The Daily Index remains below its negative moving average line and the momentum indicator is moving lower below its negative trigger line. It is, however, oh so slightly still above its neutral line in the positive zone. As mentioned earlier the volume indicator, although it could still be said to be in a lateral phase, is biased towards the down side and lower than its been for over three months. It is below its negative trigger line. All in all the intermediate term rating goes to BEARISH.
The short term is no better. The Index remains below its negative moving average line and the momentum indicator is in its negative zone, heading lower, below its negative trigger line. The daily volume action is still somewhat low but that’s not too bad on the down side. The short term rating is BEARISH.
The downward moves have been pretty small and in the end the overall trend seems to remain in the lateral direction. So, for the direction of least resistance I will go for the lateral today.