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.

24 August 2010

Merv's Daily Commentary 24 Aug 2010

After The Close, 24 Aug 2010

Merv’s Daily Uranium Index
Market Data

Open: 157.20
High: 159.14
Low: 153.81
Close: 155.80
Volume: 2986

Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.

Uranium price declined by $0.50 this week and I guess it was no help to the stocks. Today’s action went the wrong way. It still does not have any strength behind the down move but stocks can drop a great deal without any strength behind them. The up trending channel has been decisively broken on the down side so now we look towards the next support, which is not that far away at 153. At that point we have the lows from two weeks ago and the 65 DMAw line. Both could give a halt to the downside move. It’s still possible that the Daily Index may continue toward the July lows for a test of that low, but that’s not yet evident.

The Merv’s Daily Uranium Index closed lower by 2.93 points or 1.85%. There were 10 winners, 29 losers and 11 slackers. Cameco lost 3.7%, Extract lost 0.8%, Fronteer lost 2.6%, Paladin lost 0.6% and Uranium One lost 4.7%. The best winner of the day was CanAlaska with a gain of 11.1% while the loser of the day was Bannerman with a loss of 10.8%. Market Vectors Nuclear Energy ETF lost 2.2%.

Things are changing a little, even in the intermediate term. The Daily Index remains above its positive moving average line, however, the momentum indicator has now dropped below its neutral line into the negative zone. The indicator is also below its negative trigger line. As for the volume indicator, it has now dropped below its trigger line although the trigger is still slightly pointing upwards. All in all the intermediate term rating is starting to weaken and is now at a + NEUTRAL level.

On the short term it’s all negative. The Daily Index is once more below its moving average line and the line slope is to the down side. The momentum indicator has dropped into its negative zone and is below its negative trigger line. The daily volume action still leaves a lot to be desired, although low volume means nothing on the down side. All in all the short term rating is now BEARISH. The very short term moving average line remains below the short term line for confirmation of the bear.

As for the immediate direction of least resistance, I guess that would be to the down side. The Stochastic Oscillator is once more in its negative zone and moving lower. The direction of the Index seems to be towards the down side so that’s the way I’ll go for tomorrow.

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