After The Close, 25 Nov 2008
Merv’s Daily Uranium Index
Market Data
Open: 110.26
High: 114.27
Low: 102.19
Close: 108.06
Volume: 9795
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
A slight halt in the rally but fortunately it may not be significant. It barely moved down much before returning to the up side. However, it did not quite make it to the plus side on the close. Maybe tomorrow. The Index remains trapped inside that box but now we have a new major pattern in play (see below).
The Merv’s Daily Uranium Index closed lower by 2.55 points or 2.30%. There were 11 winners, 32 losers and 7 going nowhere. Of the five largest stocks these were mixed. Cameco gained 2.1%, Denison did not have a good day and lost 24.4%, Paladin lost 11.1%, Uranium One lost 4.1% and USEC gained 3.6%. The best daily performer was Azimut Exploration with a whopping gain of 71.7% while the loser of the day was Denison with that 24.4$ loss.
On the intermediate term we can now visualize a new pattern in formation. With the bottoming action of the past week we can now see a double bottom in formation requiring only a move through the previous high to be validated. Of course the previous high is the upper resistance line of the box so what we are talking about is still the box pattern but in a different light. Most investors with even a slight knowledge of technical analysis have heard of the double bottom while they may not have heard of the box. This is just another indicator that is starting to provide us with warnings that a reversal of some kind may be ahead.
Nothing in the indicators, short or intermediate term, has changed today so I’ll just cut to the chase and stay with yesterday’s ratings, BEARISH for the intermediate term and + NEUTRAL for the short term.
The action today, although on the down side, has not changed the positive immediate term direction and that remains as the direction of least resistance for another day.
Merv’s Daily Uranium Index
Market Data
Open: 110.26
High: 114.27
Low: 102.19
Close: 108.06
Volume: 9795
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
A slight halt in the rally but fortunately it may not be significant. It barely moved down much before returning to the up side. However, it did not quite make it to the plus side on the close. Maybe tomorrow. The Index remains trapped inside that box but now we have a new major pattern in play (see below).
The Merv’s Daily Uranium Index closed lower by 2.55 points or 2.30%. There were 11 winners, 32 losers and 7 going nowhere. Of the five largest stocks these were mixed. Cameco gained 2.1%, Denison did not have a good day and lost 24.4%, Paladin lost 11.1%, Uranium One lost 4.1% and USEC gained 3.6%. The best daily performer was Azimut Exploration with a whopping gain of 71.7% while the loser of the day was Denison with that 24.4$ loss.
On the intermediate term we can now visualize a new pattern in formation. With the bottoming action of the past week we can now see a double bottom in formation requiring only a move through the previous high to be validated. Of course the previous high is the upper resistance line of the box so what we are talking about is still the box pattern but in a different light. Most investors with even a slight knowledge of technical analysis have heard of the double bottom while they may not have heard of the box. This is just another indicator that is starting to provide us with warnings that a reversal of some kind may be ahead.
Nothing in the indicators, short or intermediate term, has changed today so I’ll just cut to the chase and stay with yesterday’s ratings, BEARISH for the intermediate term and + NEUTRAL for the short term.
The action today, although on the down side, has not changed the positive immediate term direction and that remains as the direction of least resistance for another day.
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