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.
A trip to the dentist late yesterday afternoon left yours truly in not a writing mood. My excuse for yesterday’s lack of posting.
We have a support from a couple of weeks back at the 239 level. Should the Index close below that point we could say we have had a double top confirmed. Until then we have a potential double top. Yes, I know that the past few days has seen higher levels and a double top is somewhat tilted but nothing in life is perfect and you go with the best interpretation you have. A close below 239 would then project to 211 which is in the Nov low area.
The Merv’s Daily Uranium Index closed lower by 6.81 points or 2.64%. There were only 5 winners with 40 losers. Five stocks stayed out of the battle. Cameco lost 4.3%, Denison lost 3.0%.Extract lost 1.4%, Paladin lost 3.3% and Uranium One was one of those lucky winners with a gain of 0.7%. The best winner was Rockgate Capital with a gain of 5.1% while Powertech Uranium was the loser of the day with a loss of 7.7%. Market Vectors Nuclear Energy ETF lost 1.2% and Global X Uranium ETF lost 2.5%.
The intermediate term indicators and ratings remain unchanged so far at BULLISH while the short term is seeing some changes. The Daily Index closed below its short term moving average line and the line slope has turned downward. The momentum indicator is still just a hair above its neutral line in the positive zone but it is below its negative sloping trigger line. The daily volume action is not really telling us anything special. Despite the momentum still being positive the rating has now gone to the full BEARISH level. The very short term moving average line remains above the short term line so we do not yet have this confirmation of the bear.
As for the immediate direction of least resistance, that looks like it is to the down side.