Merv’s Daily Uranium Index
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Another down day in the uranium market. Looking at the intermediate term momentum indicator we haven’t been this low inside the negative zone since last March just as the Index started its sharp March to May rally. Let’s hope the Index is setting us up for a similar rally just ahead. In the mean time one should just be watching and waiting. You never know how low the market can go before it reverses.
The Merv’s Daily Uranium Index closed lower by 1.82 points or 1.06%. There were 13 winners, 33 losers and only 4 confused. Cameco was one of the confused not moving up or down. First Uranium lost 4.9%, Paladin lost 2.5%, Uranium One lost 2.1% and Uranium Participation gained 2.0%. The best winner was Uranium Resources with a gain of 10.0% while the loser of the day was Laramide with a loss of 12.3%. Market Vectors Nuclear Energy ETF lost 1.0%.
With another down day all indicators continue to be negative and all ratings continue to be BEARISH.
As for the immediate direction of least resistance, I’m not batting a very good average here but here goes. Looking at the Stochastic Oscillator, my aggressive momentum indicator, it continues to head higher although it is still in its oversold zone. Another day or so and it will break through its oversold line to the up side to signal a bounce or rally ahead. I am going to close my eyes and go to the up side as the direction of least resistance.