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 week and another $1.00 drop in the price for uranium. That sure ain’t doing the stocks any good. The Daily Index continued its decline making it 6 out of 7 days on the down side. Must be a bounce around here somewhere. That support at the 151 level seems to be the next major support to watch. A move below that and we’re off towards new lows again.
The Merv’s Daily Uranium Index closed down 3.14 points or 1.95%. There were only 5 winners, 35 losers and 10 holding their own. Of those 5 largest stocks by market value, all were on the down side. Cameco lost 1.2%, First Uranium lost 0.4%, Paladin lost 5.0%, Uranium One lost 2.0% and Uranium Participation lost 4.6%. The best performer of those 5 lonely winners was US Energy with a good gain of 23.6% while the loser of the day was Rockgate Capital with a loss of 13.9%.
After going bearish yesterday the long term rating remains unchanged as the Index moves further below its long term moving average line. The line slope still remains very slightly positive but the overall rating remains BEARISH.
On the intermediate term nothing has changed here either, except for getting more negative. The Daily Index continues to move lower below its negative sloping moving average line. The momentum indicator continues to move sharply lower and is at its lowest point since March. It continues below its negative sloping trigger line. As for the volume indicator, well it has been warning us that speculators were losing faith in the uranium stocks so it continues to move lower below its negative trigger line. The intermediate term rating remains BEARISH.
The only good things that one can say for the short term is that the indicators are so bad that a bounce of some sort is in order. The Index is well below its negative sloping moving average line. The very short term moving average line (not shown) continues to move lower below the short term line and is opening up the gap between the two. The momentum indicator is very, very close to entering its oversold zone. Once inside the zone one should be on guard for a bounce, or maybe even a short term rally. However, we must wait for the reversal of the indicator to understand that a bounce or rally was in progress. The daily volume action perked up a little today, which is not good on the down side. The short term rating remains BEARISH.
The immediate direction of least resistance must be to the down side at the present time. As mentioned, I am expecting a bounce or rally very soon but there is still no technical indication of it being in progress at this time.