for week ending 25 February 2011
Merv’s Daily Uranium Index
Market Data for Friday 25 Feb 2011
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Note that additional charts of the Daily and Weekly Indices were posted earlier and should be viewed during this commentary.
Way behind so this week-end commentary will be short (just the facts).
I hope to have a brief summary on the Fibonacci numbers on Monday evening.
The Merv’s Daily Uranium Index closed up 6.50 points or 2.50% on Friday. There were 42 winners, 3 losers and 5 bummers. Cameco gained 2.1%, Denison gained 5.9%, Extract was a bummer, Paladin gained 1.2% and Uranium One gained 3.7%. The best winner of the day was Terra Ventures with a gain of 11.8% while the loser of the day was Macusani Yellowcake with a gigantic loss of 2.3%. Market Vectors Uranium-Nuclear Energy ETF gained 1.5% while Global X Uranium ETF gained 3.5%.
For the full week the Merv’s Weekly Uranium Index closed lower by 557.07 points or 4.90% (the Daily had a weekly loss of 3.2%). There were 7 weekly winners, 42 losers and only one bummer. Cameco lost 2.6%, Denison lost 7.8%, Extract lost 3.7%, Paladin gained 0.4% and Uranium One gained 2.8%. The best weekly winner was Uranerz with a weekly gain of only 4.9% while the loser of the week was Macusani with a loss of 18.4%. Market Vectors Uranium-Nuclear Energy ETF lost 2.0% while Global X Uranium ETF lost 2.0%.
Nothing has changed on the long term. All indicators remain positive for both Indices and therefore the long term ratings remain BULLISH.
On the intermediate term things are getting a little bit scary. The Daily Index closed below its moving average line on Thursday but the line slope remained positive. With Friday’s action the Index is once more above the moving average line with the line continuing to remain in a positive slope. The momentum indicator remains in its positive zone but below its negative sloping trigger line. The volume indicator has moved below its trigger line and the trigger has now turned downward. All in all the intermediate term rating is BULLISH but just barely so. The short term moving average line remains above the intermediate term line for confirmation of this bull but the short term line is heading lower towards the intermediate line.
On the short term the action of Friday was encouraging but did not change the existing indicators. The Index remains below a negative sloping moving average line. The momentum indicator is still in its negative zone below its negative trigger line. The daily volume action remains low as could be expected. On the short term the rating remains BEARISH with the very short term moving average line confirming.
As for the immediate direction of least resistance, that looks like it might be to the up side at least for another day or so. The Stochastic Oscillator has moved back above its oversold line and above its positive trigger line, a good sign at least for the very short term.