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.

25 November 2009

Merv's Daily Commentary 25 Nov 2009

After The Close, 25 Nov 2009

Merv’s Daily Uranium Index
Market Data

Open: 175.60
High: 178.77
Low: 173.32
Close: 177.52
Volume: 4110

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 small move upwards with lower volume activity signifying nothing much. The dominant feature is still the “box” that the Index is in, i.e. upper resistance at 197 and lower support at 151. After half a year we can now consider this box to be a long term feature. In addition to the major confine there are a few other trend indicators, the most notable is the short term up trending channel. The Index has traded during the day below the channel on two days now but on both it has closed inside the channel. There is also a short term support at just above the 170 level. Despite the roller coaster ride we have had over the past many months the internal strength has been primarily positive. You can see this by the fact that the intermediate term momentum indicator has been overwhelmingly in its positive zone during this time. It had gone negative for only very brief periods. This underlying strength is seen if we draw a median line through the daily action over this period. A median line should have half the action above and half below the line. If I have drawn the median half correctly we see that the line continues to slope gently upwards. Although the Index being in a horizontal box for 6 months might suggest a lateral trend we see that this is not exactly true with the average or median action continually improving. Just grabbing on to anything that looks positive here. That’s what happens when the action puts one to sleep. Your mind wonders.

The Merv’s Daily Uranium Index closed the day slightly on the up side by 1.97 points or 1.12%. There were 25 winners, 15 losers and 10 sissies afraid to go either way. As for the top 5 stocks, Cameco gained 0.7%, First Uranium gained 10.3%, Paladin gained 1.0%, Uranium One lost 1.3% and Uranium Participation lost 1.6%. Market Vectors Nuclear Energy ETF gained 2.0%.

Things good a little bit brighter on the intermediate term ratings. The Index closed above its moving average line and the line is heading upward. The momentum indicator remains in its positive zone and is once more above a positive sloping trigger line. The volume indicator remains above its positive sloping trigger line. All is once more positive in the world and the intermediate term rating has moved back into the BULLISH camp.

The short term is almost the same except for the volume action. The Index closed above its short term positive sloping moving average line. The momentum indicator moved above its neutral line into its positive zone and above its positive trigger line. As for the volume, that is pretty low although this could be due to the U.S. Thanksgiving Day holiday tomorrow. Putting it all together the short term is back to a BULLISH rating.

As for the immediate direction of least resistance, the action now has me back into the lateral camp. The Stochastic Oscillator has turned around but is still below its trigger line and therefore too early to call it a real turn around.
Just noticed that the lower channel trend line has disappeared from the chart. You can look at the chart on the previouis day to see where it should have been.

No comments: