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.
Another day and another up day in the uranium market. The $0.50 increase in uranium price this week seemed not to have much effect on the stocks. Maybe it’s because the stocks have long ago acted upon the price advance which was ahead. One should understand that it is not unusual for stocks to move long before the fundamentals are generally known.
We see the market action over the past couple of weeks trapped between that second and third FAN trend lines. It will probably stay trapped inside that area until a reaction sets in to take it below the second line. The steepness of the third line suggests a breaking of that line not to be a probability. In the mean time the action is also trapped within an up trending channel. This should be the focus for the immediate future as it is most likely that the Index will break the channel, and I suspect it will do so on the down side. The topping activity in the short and intermediate term momentum indicators and in the Stochastic Oscillator suggests continuing weakness in the Index action, despite the continuing minor upside closings. One should be on guard for a possible reversal of trend, how serious of a reversal is not yet determined.
The Merv’s Daily Uranium Index closed higher by 0.77 points or 0.32%. There were 23 winners, 24 losers and 3 stocks just bumming around. Cameco lost 1.0%, Denison lost 0.9%, Extract was just bumming around, Paladin gained 0.4% and Uranium One lost 0.4%. The best daily winner was Formation Metals with a gain of 17.2% while the loser of the day was Tournigan Energy with a loss of 14.3%. Market Vectors Nuclear Energy ETF lost 1.0%.
With the Index up again the ratings have not changed and all remain BULLISH.
I continue with the lateral direction as the direction of least resistance for another day.