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.
Well, you can’t knock the action. The Daily Index took another swipe at the up side and is now within striking distance from a new recovery high. The volume indicator has already moved into new recovery highs for a very good technical sign of strength behind the move. Speculators are again getting into uranium stocks. Uranium itself has moved higher this week by $1.75 after more than a $2 move last week. It seems to have bottomed out exactly where the head and shoulder pattern said it should. Still far more upside in uranium price is required before it makes its upside break, but the direction lately has been positive.
The Merv’s Daily Uranium Index closed on the up side by 5.67 points or 3.08%. There were 31 winners, 10 losers and 9 going no place. We could do with still slightly better figures here but we’ll take what we got. As for those five largest stocks, they were all gung-ho on the up side. Cameco gained 6.7%, First Uranium gained 3.6%, Paladin gained 8.8%, Uranium One gained 5.5% and Uranium Participation gained 5.5%. The best daily winner was Uracan Resources with a gain of 26.0% while the loser in the bunch was US Energy with a loss of 7.2%. Even this loss was high. The other losers were in the 4% or less bracket.
As one can imagine, everything continues to be on the positive side for the intermediate and short term. The ratings for both periods remain BULLISH.
Of interest is the short term momentum indicator. It has moved into its overbought territory but only by a fraction of a point. I expect it might remain overbought for a few days but time will tell. The Stochastic Oscillator has turned upwards and is now above its positive trigger line BUT it still is not showing any great strength in the recent (including today) moves.
Depending upon what your individual stock is showing, technically, one might be jumping into the market but that SO is still worrying and a rest or reaction just seems to be around the corner. Should it come there is no indication that it will be of major significance. It will most likely be a short term reaction followed by more upside.