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.
We are getting very close to a new break-out point. The down trend line is just above the latest close and the previous high is just a little higher. Although there is nothing exceptional about the intermediate term momentum indicator the short term one has at least two encouraging features. Already mentioned previously is the positive divergence versus price action which continues. At the same time the short term momentum is now at its highest level for the past 6 weeks while the Index itself still has a way to go. This is a further indication that the short term strength behind the most recent move is better than it seems.
The Merv’s Daily Uranium Index closed higher by 0.74 points or 0.48%. There were 23 winners, 20 losers and 7 just wondering around. Cameco lost 0.4%, Extract was just wondering around, Fronteer lost 0.2%, Paladin lost 1.2% and Uranium One gained 3.2%. The best winner of the day, and what a winner, was Quaterra with a gain of 55.7%. Most of the gain came in the final half hour of trading. I haven’t yet seen what the story was but I’m sure there is a story. It may be something to do with Goldcorp but that is only a guess. The worst loser of the day was Energy Fuels with a loss of only 5.7%. Market Vectors Nuclear Energy ETF gained 0.9%.
There is no change in the intermediate term indicators so I’ll just cut to the chase and say that the rating remains BEARISH.
On the short term the only change is the moving average just slightly turning to the positive but that is enough to further improve the rating. The short term rating is now a full BULLISH rating with the very short term moving average confirming the rating.
As for the immediate direction of least resistance, the Stochastic Oscillator continues to point lower but all we need is one more day of reasonable upside and we break the down trend line. Unfortunately, the SO needs to improve to confirm such a move. I will go with another day of lateral trending.