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.

03 June 2010

Merv's Daily Commentary 03 June 2010

After The Close, 03 Jun 2010

Merv’s Daily Uranium Index
Market Data

Open: 154.01
High: 156.13
Low: 150.84
Close: 153.99
Volume: 2660

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.

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