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 up day in the market but the going is going to get tough over the next few days. The Index is now in a very strong resistance zone and it would take that move through the 180 level to overcome it. Yes, I know that there is still another resistance just above the 190 level but that one does not have the strength behind it that this one has. We are talking 3 months resistance as against 6 weeks. Still one would not discount the next one but I think once we are through the 180 level we can breath a sigh of relief.
The Merv’s Daily Uranium Index closed up 2.81 points or 1.68%. There were 23 winners, 21 losers and 6 just sitting doing nothing. Of those five largest stocks, once more we had a loser in the bunch. Cameco gained 5.2%, First Uranium gained 2.9%, Paladin gained 9.8%, Uranium One lost 1.2% and Uranium Participation was one of those sitting around doing nothing. The best winner today was Ucore Uranium with a gain of 24.3% while the loser on the day was Strateco with a loss of 9.4%.
We have the Index once more closing above its intermediate term moving average line but the line slope still remains in a downward direction. The momentum indicator is back in its positive zone and above its positive trigger line. The volume indicator has just nudged itself above its trigger line but the trigger is still in a downward slope. This all brings the intermediate term rating back to the BULLISH level.
On the short term things are a little stronger with the Index above its positive moving average line and the momentum back in its positive zone above its positive trigger line. The daily volume action could still be better but we’ll take what we can get. All in all, the short term rating is BULLISH.
As for the immediate direction of least resistance, I guess that should continue to be to the up side. However, I would not discount the fact that the trend from here may not be as easy as the previous few days and a lateral move may not be unexpected.