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.

16 February 2010

Merv's Daily Commentary 16 Feb 2010

After The Close, 16 Feb 2010

Merv’s Daily Uranium Index
Market Data

Open: 167.96
High: 172.96
Low: 165.96
Close: 171.84
Volume: 4636

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

Could this be the start of something good? I don’t know but so far so good. Technically, one problem at the present time is that the plunge last month was so fast for so far that now as we are having a rally it needs to go for some distance before the previous trend is confirmed to change. It’s going in the right direction but still needs to move a lot higher, except for the short term trend which is shown quite quickly to change.

The Merv’s Daily Uranium Index closed higher by 5.17 points or 3.10%, the best daily close for many weeks. There were 32 winners, 8 losers and still 10 stocks confused. The five largest were mixed. Cameco gained 1.1%, First Uranium lost 4.2%, Paladin gained 3.0%, Uranium One lost 0.3% and Uranium Participation gained 4.6%. The best daily winner was Forum Uranium with a gain of 18.8% while the loser of the day was Continental Precision with a loss 0f 5.9%. Market Vectors Nuclear Energy ETF gained 3.2%.

Despite the nice move today the intermediate term rating has not yet turned around. The Daily Index is still below its negative sloping moving average line and the momentum indicator is still in its negative zone. The indicator is moving upwards fast and could go into the positive in a day or two. It is also above its positive trigger line so things are firming up positively. The volume index has not yet perked up to any degree and remains below its negative trigger line. The intermediate term rating remains BEARISH.

As for the short term, things are perking up here. The Daily Index closed above its short term moving average line and the line is sloping in an upward direction. The momentum indicator is moving upward fast and is just a hair from going into its positive zone but unfortunately is still in its` negative zone for today. It is far above its positive trigger line. As for the daily volume activity, that is still relatively low for an up day but hopefully that will change as the Index moves higher. The short term rating is BULLISH.

As for the direction of least resistance, that definitely looks to be to the up side. The Stochastic Oscillator has moved into its overbought zone but it just might stay there for a while. Should it reverse and move below the overbought line that would really be a cautionary sign.


Anonymous said...

Hello Merv, just and FYI if you haven't heard. Obama just backed a 8+ billion loan guarantee for a new nuclear plant. Hope this gives the industry a boost.
Fundamentally, it is a positive sign. Hope the charts reflect the good news... Keep up the great tech analysis.

Merv said...

Just keep in mind. To build new plants you need someplace to dump the used nuclear fuel. Obama closed the one place where they were dumping the used fuel, in Nevada. So, nice to build the plant but will they activate it if they have no place to dump the fuel? I'll believe Obama when they start actual building a plant.

Anonymous said...

The Obama administration closed down the Yucca Mtn nuclear waste depository. They will need to find another solution. I think the french reuse their spent waste somehow...

In any case, I believe they will start building the plant near Atlanta Georgia this year.