After The Close, 16 Sep 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.
WOW! I thought it would take the Daily Index at least a couple of more days to get through that 180 resistance but here we are, just one day later and closing well above the 180 point. It is a good break as the volume increased with the move. Today was the best upside volume we have had since the volume at the very top just two days before the reversal in early June. This looks like it. Upside rules until confirmed otherwise. Yes, I know, there is still that previous top from early June but I don’t think that will be anywhere near the problem to get through that this 180 resistance was. I will try and post a few stock charts later tonight, stocks that look like they are ready to move or just in their very early stages. As enthusiastic as this move may be one should never let one’s guard down and always be prepared for reversals. That is where the technical analysis comes in.
The Merv’s Daily Uranium Index closed on the up side by 5.58 points or 3.17%. There were 32 winners, 10 losers and still 8 not knowing that the 180 resistance has been breached. As for those five largest, they were all in the winners circle. Cameco gained 2.5%, First Uranium gained 9.7%, Paladin gained 2.1%, Uranium One gained 9.6% and Uranium Participation gained 5.1%. The best winner today was Uranium Resources with a gain of 28.4% while the loser of the day was Benton with a loss of 18.2%.
Everything is going great on the intermediate term. The Daily Index remains above its positive moving average line and the short term line has now crossed above the intermediate term line for a positive confirmation. The momentum indicator remains in its positive zone and moving higher above its positive trigger line. The volume indicator is moving rapidly higher and is above its positive trigger line. Everything says BULLISH for the intermediate term rating.
The short term is likewise quite positive. The Index remains above its positive moving average line and the very short term moving average remains well above the short term line for a positive confirmation. The momentum remains in its positive zone above its positive trigger line. It is at its highest level since the top in early May and is just about to enter its overbought zone. The daily volume action perked up today with one of its better upside volume days for a long time. The short term can only be rated as BULLISH.
Immediate direction – GO MAN, GO