for week ending 09 October 2009
Merv’s Daily Uranium Index
Market Data for Friday 09 Oct 2009
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Note that additional charts of the Daily and Weekly Indices were posted earlier and should be viewed during this commentary.
Well, despite a downer on Friday that ended up to be a pretty good week. The winners and losers were lopsided on the right side and there were 18 double digit winners but only 3 double digit losers. Now on to the next week. How does it look, let’s go through the motions.
The Merv’s Daily Uranium Index closed Friday on the down side. It was lower by 2.62 points or 1.47%. There were 14 daily winners (quite a change from Thursday), 30 losers and 6 going nowhere. All of the five largest stocks were bummers on Friday. Cameco lost 0.8%, First Uranium lost 8.2%, Paladin lost 4.9%, Uranium One lost 4.3% and Uranium Participation lost 2.7%. The best daily winner was RPT Uranium with a gain of 22.2% while the worst loser was First Uranium with that 8.2% loss.
For the week as a whole, the Merv’s Weekly Uranium Index closed higher by 429.38 points or 8.41%. There were 41 weekly winners, 6 weekly losers and 3 going nowhere. For the week the five largest stocks were all higher. Cameco gained 8.7%, First Uranium gained 19.8%, Paladin gained 11.5%, Uranium One gained 27.0% and Uranium Participation gained 3.3%. The best weekly winner was Freewest with a gain of 58.7% while the loser of the week was Mega Uranium with a loss of 13.2%.
Since it’s been a hectic week and things have changed during that time let’s get right to where the charts and indicators stand at the Friday close. On the long term the Weekly Index remains above its positive sloping moving average line and the momentum indicator remains in its positive zone. The long term version of the Daily Index remains above its positive sloping moving average line while the momentum indicator continues just below its neutral line in its negative zone but above its positive trigger line. The volume indicator has just turned positive and has moved above its now positive sloping trigger line. On the long term I will continue to stay BULLISH for both Indices. The Daily Index is once more rated as BULLISH after a week in the bear camp.
On the intermediate term everything is positive. The Daily Index is above its positive moving average line and the momentum indicator is in its positive zone above its positive trigger line. The volume indicator has moved higher and is above its positive trigger line. The rating therefore can only be BULLISH. As confirmation the short term moving average line has now moved above the intermediate term line.
On the short term things arte pretty much the same. The Index is above its positive moving average line while the momentum indicator is in its positive zone above its positive trigger line. The daily volume action has been encouraging and in the past few days has been acting as one would expect during an up trend. The short term rating is BULLISH. Here too, as confirmation the very short term moving average line is above the short term line.
Once more I have drawn that previous resistance line at just below the 180 level. The Index was above the line for only two brief days (on a closing basis) and those were separated by negative days. This does not really make for a good confirmed break and we must now once more wait for a better upside move through the resistance line. Although the volume indicator had been showing a negative bias recently in actuality it has been trapped in a lateral box for over 5 months now. It is at about its mid point in the box and needs to move aggressively higher and out of the box on the up side. Lots to look forward to in the coming days. Stay tuned.