Uranium Companies

There are very few pure uranium companies. Most companies, especially the small exploration type, are active in more than the uranium industry. This blog makes no attempt to guage the percentage of a companies activity that are related to the finding, mining or processing of uraniun. They all do, however, have some uranium activities (to the best of our review).

Merv's Uranium Indices

I have developed two Uranium Indices. They each have the same component stocks but are calculated using different methodologies. My weekly Index is based upon the average weekly performance of the component stocks. My daily Index is based upon the daily average of the component stocks open, high, low and close prices along with the daily average volume of all component stocks.

Click on the chart or table to enlage the view.

23 September 2009

Merv's Daily Commentary 23 Sept 2009

After The Close, 23 Sep 2009

Merv’s Daily Uranium Index
Market Data

Open: 180.62
High: 182.84
Low: 175.26
Close: 177.59
Volume: 5824

Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.

A down day for the Daily Index. I’m somewhat surprised that the Index has not dropped more than it has. After all, the metal itself was down another $2.50 this week. It is at $42, a price that was predicted by that small head and shoulder pattern talked about a few days back. The price is within $2.00 of its previous low in April. Should the price of uranium drop much lower then we just might see a significant drop in uranium share prices.

The Merv’s Daily Uranium Index closed 2.43 points lower or 1.35%. There were 15 winners, 29 losers and 6 confused. Cameco lost 1.1%, First Uranium lost 9.8%, Paladin lost 2.3%, Uranium One lost 4.1% and Uranium Participation gained 1.1%. The best winner on the day was Purepoint with a gain of 16.7% while the loser on the day was Pitchstone with a loss of 16.0%.

The recent Index declines have not yet affected the intermediate term indicators. The Index remains above its positive moving average line and the momentum indicator remains in its positive zone. However, the momentum indicator is heading lower and has crossed below its still positive sloping trigger line. The volume indicator continues to trace a lateral path but now with a slight negative bias. It remains above its positive trigger line. The intermediate term rating remains BULLISH.

On the short term things get changed here quicker although they are not yet at the level of changing the rating. The Index remains above its positive moving average line although the daily low did go below the line. The momentum indicator remains in its positive zone but moving lower. It has crossed below its trigger line and the trigger has turned downward. The daily volume action remains at about an average level, not high nor low. The short term rating is getting close to a change but still today it is BULLISH.

The very short term moving average line has turned downward while the Index closed below the line. The Stochastic Oscillator remains very weak and has moved into its negative zone. The immediate direction of least resistance must be to the down side today. Let’s hope that doesn’t work out.

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