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.
It started nicely on the up side but something went wrong during the day and WAM the Index went down and closed the day on the down side. We still have a basically lateral trend but with a negative bias. How far negative this will go is anyone’s guess but I still don’t think it will breach that previous mid-May low. As mentioned in previous commentaries I still don’t think I would call the sideways move by the Index, breaking “above” the down trend line as a valid upside break. I’d like to see a close above a previous day’s high. At today’s high of 154.9 that provides quite a move so I will modify that requirement and wait for a close above a previous opening price.
The Merv’s Daily Uranium Index closed on the down side by o.86 points or 0.57%. There were 18 winners, 21 losers and 11 sleepers. Cameco lost 1.0%, Extract gained 1.6%, Fronteer lost 5.8%, Paladin gained 0.9% and Uranium One gained 1.3%. The best winner of the day was Benton, which could only get a gain of 6.5%. The worst loser was Uranium Resources with a loss of 15.6%. Market Vectors Nuclear Energy ETF lost 0.3%.
The daily close was a very small decline and did not affect either the intermediate or short term indicators. The ratings remain as on the week-end, intermediate term BEARISH and short term BULLISH.
As for the immediate direction of least resistance, I will go with the lateral direction for another day although the direction is weak and possibly heading a little lower.