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.

08 March 2010

Merv's Daily Commentary 08 Mar 2010

After The Close, 08 Mar 2010

Merv’s Daily Uranium Index
Market Data

Open: 173.17
High: 174.98
Low: 170.52
Close: 172.26
Volume: 3069

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

Nothing has changed from the week-end as far as the indicators and ratings are concerned. With the miniscule move today the lateral trend remains the dominant direction of motion. As I do every so often today I show the Point % Figure chart. This chart is primarily an intermediate term chart. I like P&F charts as they filter all the short term noise in the trading data and give us only the prevailing chart.

Without going through the whole history but zeroing in on the latest status, the end of year rally a year ago gave us a price projection to the 300 level. This is still the prevailing projection. Since then the action has taken a lateral trend with a resistance at the 190 level (requiring 200 for an upside break-out) and a support at the 160 level (requiring a move to 1250 for a downside break). The last direction of plotting is to the down side requiring a move to 180 for the direction to turn around. Now, assuming we do get a turn around and an upside break, we will get two additional projections, one to 380 and another to 580.

A downside break would project into the minus number and not feasible. There was a long ago downside projection that was not met and that was to the 50 level. A downside break would find huge support at the 100 level and would be expected to hold there.

That’s a quickie summary of where we presently stand, P&F wise.

The Merv’s Daily Uranium Index closed lower by 0.03 points or 0.02%. There were 16 winners, 24 losers and 10 just sitting there in a daze. Cameco gained 0.2%, First Uranium was just sitting there in a daze, Paladin gained 5.3%, Uranium One lost 2.1% and Uranium Participation lost 0.7%. The best winner was Alberta Star with a gain of 14.8% while the worst loser was Pele Mountain with a loss of 8.9%. Market Vectors Nuclear Energy ETF was another stock just sitting there in a daze.

With nothing changed today the intermediate term remains BEARISH and the short term remains BULLISH. The immediate direction of least resistance remains unchanged as a lateral direction.


Anonymous said...

Hi Merv, Thanx for the updated P&F. I have a question though regarding your projection to 380.

How do you arrive at that? It appears to me (granted a layman) that the 250 level would be very strong resistance.

Do you arrive at 380 because of your proprietary data, or is there something that I should be seeing in the chart itself?

Thanks as always for the information and education. Very grateful!

Anonymous said...

i like thatchart - eliminates all the noise

Merv said...

It is based upon a normal horizonatl count, assuming the direction reverses to the up side and breaks above resistance. We would then have 11 columns during thios past year consolidation. take the 11, multiply by the uniy 10, multiply again be the reversal 2 and finally add the result to the lowest level of the consolidation which is 160.