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 now at our first support, from the activity two weeks ago. Will that support hold? That’s hard to say. There is no real strength on the down side but no real enthusiasm for the up side so it’s a coin toss. The down trend line from the April high seems to have now become a support line. The Index, if it continues lower, will probably trend above this support line.
The Merv’s Daily Uranium Index closed lower by 2.55 points or 1.71%. There were only 8 winners, 28 losers and 14 dancing around. Cameco lost 2.7%, Extract was a dancer, Fronteer gained 0.8%, Paladin lost 1.5% and Uranium One lost 2.7%. The best winner of the few was Forum Uranium with a gain of 14.3% while the loser of the day was Kivalliq Energy with a loss of 13.1%. Market Vectors Nuclear Energy ETF lost 2.0%.
The Daily Index continues to drift lower well below its negative sloping moving average line. The intermediate term momentum indicator remains in its negative zone and below its negative trigger line. The volume indicator continues in a basic sideways motion but is now below its trigger line and the trigger is pointing lower. What is there to say, the rating remains BEARISH.
The short term indicators are very similar. The Daily Index is below its negative sloping moving average line and the momentum indicator remains in its negative zone below a negative trigger line. The daily volume action is weak as might be expected when the Index moves lower. The short term rating remains BEARISH. The very short term moving average line has now moved below the short term line for confirmation of the bear.
As for the immediate direction of least resistance, I will continue on the lateral direction although the Stochastic Oscillator has entered its oversold zone and may be expected to recover pulling the Index up with it. However, that has not yet taken place so it’s always better to wait for confirmation.