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 but on closer examination not as bad as it may seem. Almost all of the daily trading activity was inside yesterday’s trading range although the close was on the low side. This kind of trading range is often a precursor to a turn around in the trend. We’ll have to see tomorrow if such turn around may be in progress. For now that low of a few weeks back still looks like it will hold.
If one were looking for some additional signs that a turn around is just around the corner one might look and say we have a reverse head and shoulder pattern, albeit a server sloping shoulder pattern. The activity since the beginning of May has the makings of such H&S pattern. This can also be seen in the momentum indicator (the RSI) posted two days ago.
On the intermediate term the Daily Index continues to move below its negative sloping moving average line. The momentum indicator (the RSI) continues in its negative zone and below its negative sloping trigger line. The volume indicator is unfortunately showing greater weakness than the Index itself. The indicator is moving lower below its negative trigger line and has entered into new recent low territory, lower than its previous low of a few weeks back. ON the intermediate term the only rating I can give the Index, at this time, is a BEARISH rating. The short term moving average remains far below the intermediate term average for a continuation confirmation of the rating.
On the short term nothing has changed. The Daily Index continues to move lower below its negative moving average line. The momentum indicator remains in its negative zone below its negative trigger line. The daily volume activity seems to be increasing while the Index moves lower. The short term rating remains BEARISH. The very short term moving average line is below the short term line for confirmation of the rating.
The Stochastic Oscillator seems to be sitting right on top of its oversold line and in the process of turning upwards. I’ll go with the lateral direction as the direction of least resistance for another day although it is looking like the up side may be just ahead.