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.
The daily high has now hit that upper resistance trend line from the channel. Now we wait for the close to penetrate the line. There is some concern that we may be in for a rest period before that happens. The short term momentum indicator is almost at the level when previous rest periods started. The Stochastic Oscillator has just inched its way into its overbought zone but may still have a day of upside left before it becomes a concern. So, maybe on Monday we might see the rest take hold with a little more upside tomorrow. As for what to expect if the rest period should arrive, well it might just be the same as a couple of weeks ago. We’ll have to wait for it to take hold before jumping the gun on any guesswork.
But what if the recent up trend should accelerate? It may then be a blow-off stage with more than just a minor rest period to follow.
The Merv’s Daily Uranium Index closed up 1.99 points or 1.10%. There were 30 winners, 13 losers and 7 just bumming around. Cameco gained 1.4%, Extract gained 3.2%, Fronteer was just bumming around, Paladin gained 6.0% and Uranium One gained 2.4%. The best winner of the day was Blue Sky Uranium with a gain of 15.0% while the loser of the day was RPT Uranium with a loss of 5.3%. Market Vectors Nuclear Energy ETF gained 0.7%.
With the Daily Index continuing to close on the up side all of the intermediate and short term indicators remain in positive territory. Therefore both ratings remain BULLISH. As for the immediate direction of least resistance, I should go upward but I’ll go with the lateral direction until I get it right.