Merv’s Weekly Uranium Review
for week ending 19 August 2011
Merv’s Daily Uranium Index
Market Data for Friday 19 Aug 2011
Open: 146.94
High: 150.51
Low: 145.03
Close: 146.80
Volume: 2859
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 Indices were posted earlier and should be viewed during this commentary.
Home again but to a flooded basement, well, not really “flooded” but pretty wet. Too much happening during the week and I totally forgot to replace Terra Ventures in the Index component stock list. Will do it this coming week if nothing else goes wrong.
I’m way behind once again so I’ll just get right to the weekly review.
The Merv's Daily Uranium Index closed on the down side on Friday, lower by 1.90 points or 1.28%. There were 13 winners, 29 losers and 7 bummers (and one not counted). Cameco lost 3.3% on the day, Denison lost 2.7%, Extract gained 0.5%, Paladin lost 4.8% and Uranium One lost 1.8%. The best daily winner was Ucore with a gain of 10.6% while the worst daily loser was Bannerman with a loss of 9.5%. Market Vectors Uranium + Nuclear Energy ETF lost 0.4% while Global Uranium ETF lost 1.8%.
On a weekly basis the Merv’s Weekly Uranium Index lost 311.22 points or 5.94% (the Daily lost 5.59%). There were 3 weekly winners, 42 weekly losers and 4 weekly bummers (again one not counted). Cameco lost 8.4% on the week, Denison lost 12.2%, Extract gained 5.8%, Paladin lost 14.3% and Uranium One lost 7.9%. The best weekly winner was Uranium Energy with a gain of 7.8% while the worst weekly loser was Rockgate Capital with a loss of 27.7%. Market Vectors Uranium + Nuclear Energy ETF lost 3.9% while Global X Uranium ETF lost 6.1%.
I’ll just cut it short for the long term and intermediate term. Both are BEARISH with the intermediate term bear being confirmed by the short term moving average line.
SHORT TERM
On the short term we are heading lower but have not yet made new lows. Despite what the long term Indices (especially the Weekly Index) may imply we have not made new lows when you consider the activity early in the week of the week before last. There has, however, been significant deterioration in the recent strength of the Indices. The Daily Index weekly chart is showing the long term momentum gaining downward strength and is at its lowest level for over two years. The Weekly Index is also just about there too but needs a little more downside momentum to overcome the low of July 2010.
Trend: The Daily Index is below its negative sloping moving average line and heading lower.
Strength: The short term momentum indicator is in its negative zone below its negative trigger line, and also heading lower. Neither the price nor momentum has yet moved into new lows and that is something to watch. If they can hold above previous low levels then a good rally just might be in the cards.
Volume: The daily volume action remains pathetic. No rally of only longevity has a chance if we do not get that volume action to pick up.
At the Friday close the short term rating remains BEARISH. This is confirmed by the very short term moving average line remaining below the short term line.
As for the immediate direction of least resistance, I’ll go with the down side but with the Stochastic Oscillator just about to enter its oversold zone a bounce of some sort may only be days away.
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