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.
I knew that recent lateral movement was not going to last but was hoping that it would take a different direction than down. I guess it is heading for the next support at the 155 level (or there abouts).
The Merv’s Daily Uranium Index closed lower by 6.44 points or 3.79%. That wasn’t the worst recent decline but still a pretty good one. There were only 6 daily winners, 37 daily losers and 7 marking time. Cameco lost 3.4%, First Uranium lost 4.9%, Paladin lost 3.3%, Uranium One lost 4.3% and Uranium Participation lost 3.5%. The best of the 6 winners was Freewest with only a 5.3% gain while the worst of the 37 losers was Denison Mines with a 10.6% loss.
The Daily Index has just crossed below its long term moving average line although the line is still pointing upward. The Daily Index has continued top show its long term momentum in the negative zone. It’s still there and below its negative trigger line. With the long term volume indicator also trending lower the Daily Index rating is now BEARISH. On the week-end I will have both the Daily and Weekly ratings, the weekly had been the more positive of the two. Where it is we’ll only know on the week-end.
The Daily Index is now comfortably below its intermediate term moving average line and the line slope has turned downward after three days of a purely lateral trend. The momentum indicator has also dropped into its negative zone with today’s action. It remains below its negative sloping trigger line. The volume indicator is trending towards the down side and is below its negative trigger line. All is in place for a clear rating of BEARISH.
The short term was already bearish and today’s action has just made it more so. Without going into the details (see yesterday commentary) the rating remains BEARISH.
As for the direction of least resistance, one would have to be pretty brave to say anything other than down. Looking at the Stochastic Oscillator it is sitting on its oversold line and just a hair inside its oversold zone. It could go a little lower but is into a zone from which rallies or reversals occur, but I would be very surprised if that reversal started tomorrow.