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.

01 October 2009

Merv's Daily Commentary 01 Oct 2009

After The Close, 01 Oct 2009

Merv’s Daily Uranium Index
Market Data

Open: 169.91
High: 171.28
Low: 162.02
Close: 163.66
Volume: 5339

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.

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