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.

26 January 2010

Merv's Daily Commentary 26 Jan 2010

After The Close, 26 Jan 2010

Merv’s Daily Uranium Index
Market Data

Open: 174.60
High: 177.01
Low: 170.25
Close: 173.52
Volume: 4533

Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.

Since Nov of 2008 the price of uranium has been bouncing up and down but with steadily lower highs and steadily higher lows, until this week. The uranium price has broken into a lower low versus its previous low. What this means is not a forgone conclusion but initially it is not good. The lower low is still higher than most recent lows so we’ll just have to watch and wait if this move has any longer term effect. For now the Daily Index closed lower as it also had yesterday BUT today’s action does look like a possible bounce in the making.

The Merv’s Daily Uranium Index closed lower by 1.42 points or 0.81%. There were 14 winners, 26 losers and 10 going nowhere. Cameco lost 0.5%, First Uranium gained 11.4%, Paladin lost 0.8%, Uranium One gained 0.6% and Uranium Participation lost 4.5%. The best winner of the day was First Uranium with that 11.4% gain while the worst loser was RPT Uranium with a loss of 14.3%. Market Vectors Nuclear Energy ETF lost 0.8%.

For the third day now the Daily Index has closed below its long term moving average line. The moving average line has been in the process of turning downward but has not quite made it yet. Today, the line is in a horizontal trend and should turn downward tomorrow. In any case the long term rating for the Daily Index had turned BEARISH on the week-end and remains so.

On the intermediate term all is negative. The Daily Index closed below its negative moving average line and the momentum indicator remains in its negative zone below its negative trigger line. The volume indicator continues moving lower and is below its negative trigger line. The intermediate term rating can only be BEARISH with those indicators.

The short term indicators are likewise negative. Index close below its negative moving average line. Momentum in its negative zone below its negative trigger line. Daily volume activity now somewhat low indicating nothing specific. The short term rating remains BEARISH.

As for the immediate direction of least resistance, well that should be to the down side but the actions today of the Index and the Stochastic Oscillator suggest a turn around. The Index was a lot lower earlier but turned around and almost made it to the plus side. The Stochastic Oscillator has been in the oversold zone and today seems to be in turn around mode having just crossed above its trigger line, although not yet above the oversold line. So, lateral direction for another day although the up side would not be a surprise.

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