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.
So far, so good. I think that the action will stay inside the two FAN trend lines for a while and it seems to be going that way. The Index may, after a brief spell, still drop inside that area between the first and second FAN trend lines but let’s not get ahead of ourselves and go with what the market is doing. Uranium has increased another dollar this week but as mentioned earlier do not focus on the metal, focus on the stocks, the two may not be the same thing and stocks usually move on future expectations not on what is happening today.
The Merv’s Daily Uranium Index closed higher by 3.85 points or 1.85%. There were 34 winners, 13 losers and 3 just bumming around. A lot better than yesterday, eh! (As a Canadian I guess I have to put that “eh!” in there somewhere). Cameco gained 1.8%, Extract lost 3.5%, Fronteer lost 0.2%, Paladin was just bumming around and Uranium One gained 1.8%. The best daily winner was Crosshair Exploration with a gain of 24.0% while the daily loser was Forum Uranium with a loss of 6.3%. Market Vector Nuclear Energy ETF gained 1.2%.
The intermediate term is simple. Almost everything is still positive. About the only negative is the momentum indicator with its negative path below its negative trigger line but still in its positive zone. That one negative is only an advance warning and by itself has not changed the rating. The intermediate term rating remains BULLISH. The short term moving average line continues to confirm this rating.
On the short term things are more in play. The short term went bearish yesterday. Today there was a minor improvement. The Daily Index remains below its moving average line but although yesterday the moving average line turned very, very slightly to the down side today it turned back very, very slightly to the up side. The momentum indicator remains in its positive zone and remains below its negative trigger line. As for the daily volume action, the volume today was quite low relative to recent volume action and below the level of its 15 day average volume. For an up day that just shows the daily move to be more of a bounce from an oversold condition rather than a reversal of trend. For now the short term has improved to the – NEUTRAL level.
As for the immediate direction of least resistance, I’ll now go back to my more usual direction, the lateral direction. The Index is still weak and the rebound today was not too strong.
I’m once more going through my directory of uranium stocks to update the Index component list. I do see some changes coming. I would always welcome suggestions for inclusion into the Index component list or into my overall directory for future consideration. I may have over 160 stocks in the directory but I’m sure I do not have them all. For inclusion into the Index stocks must be North American traded and have at least a year of relative active trading history. For inclusion into my directory they should have at least some uranium activity, as for trading history they could be old or new stocks. I will then continue following them.
I expect to have another couple of Australian stocks that trade on North American markets included into the Index after completion of the review. There are a lot of Australian uranium stocks but most trade on the Australian market. A good place to start for those who might be interested in Australian stocks is the Australian Uranium Stock link on the front page in the Link section on the lower left side of the page.