Best of the Week

Uranium Stocks Neutral on Bad News - Technically Uranium with Merv

Commodities / Uranium Nov 02, 2007 - 02:40 AM

With the “bad news” one reads in the media about the rough time the largest uranium companies seem to be having it's a wonder that the Merv's Daily Uranium Index has not totally collapsed. However, cooler heads prevailed and the Index held it's ground. The Index lost 0.037 points or 0.75% on the day.

The winners and losers were somewhat better with 24 stocks on the winning side, 16 stocks on the losing side and 10 on no side at all. Of the five largest stocks based on market value, Cameco lost 7.8%, Denison lost 1.1%, Paladin gained 1.5%, UEX gained 3.1% and Uranium One gained 1.1%. The best daily performer was Forsys Metals with a gain of 19.6% while the worst performer was Cameco with that loss of 7.8%.

The Index is still trapped inside that up trending channel so from the intermediate term we still have no worry about uranium stocks in general. The action is still above a positive sloping moving average line and the momentum indicator is still above its neutral line, in its positive zone and also still trapped in its own up trending channel. Regardless of how one addresses yesterday's volume (see yesterday's commentary) the volume indicator can still be regarded as positive. So, everything looks good and the BULLISH intermediate term rating continues.

On the short term things are not quite that all out positive but still no reversal has been confirmed. The Index low for the day just touched the up trending moving average line and closed above the line. The short term momentum indicator is still in its overbought zone but just about ready to drop below the overbought line. The more aggressive Stochastic Oscillator HAS dropped below its overbought line for a warning that the immediate direction of least resistance may have changed to the down side.

We might see some down days ahead with the Index dropping below its short term moving average line but the line to watch would be that lower channel up trend line, the support line. With the Index still above its moving average line I can't drop the rating any further than NEUTRAL , and that's where we remain for another day.

By Merv Burak, CMT
Hudson Aero/Systems Inc.
Technical Information Group
for Technically Uranium with Merv

Web: http://techuranium.blogspot.com/
e-mail: merv@themarkettraders.com

During the day Merv practices his engineering profession as a Consulting Aerospace Engineer. Once the sun goes down and night descends upon the earth Merv dons his other hat as a Chartered Market Technician ( CMT ) and tries to decipher what's going on in the securities markets. As an underground surveyor in the gold mines of Canada 's Northwest Territories in his youth, Merv has a soft spot for the gold industry and has developed several Gold Indices reflecting different aspects of the industry. As a basically lazy individual Merv's driving focus is to KEEP IT SIMPLE .

This Blog is - A periodic review of the daily or weekly market action in uranium stocks. The review is strictly from the technical perspective. Merv is a pure market technician. Weekly, one will find a table of technical information and ratings of the 50 component stocks of the Merv's Uranium Index as well as a weekly summary of the uranium stock activity. Daily (most days), one will find a daily review of the market action of the Merv's Daily Uranium Index as well as technical analysis of one or more uranium stocks of interest.

Disclaimer - Technical analysis is not perfect. Should you expect perfection this is not the site for you.
Technical analysis IS a very sound technique to assess the daily or weekly trading activities in securities and to assess appropriate timing of investment activities. This blog provides such technical analysis of the trading activity in uranium stocks for your information. Any use made of this information is strictly at the users risk. No guarantees are made for the accuracy or potential for the information provided herein. Use at your own risk. You are strongly advised to check with your broker or investment adviser before activating any investment desisions.

Merv Burak Archive

Comments

Post Comment (Moderated)

Subject:

Name:

E-mail address (will not be published):

Comment:

Commenting Issue - If on submitting you are returned to the main Index Page (50% chance) then your comment has not been accepted, Follow below steps for 95% chance of comment being accepted.

Click your browser Back button (from main index page).
COPY your comment text from Comment box (i.e. copy to clipboard).
Press PAGE Refresh - You should see the message "You are not authorized to carry out this operation"
Paste your comment back into the comment text box.
Click Submit - If everything goes okay you will remain on the article page with the message "Your comment was held for moderation and will be reviewed shortly".
If instead you are again returned to the main index page then repeat 1-5, alternatively EMAIL to comments @ marketoracle.co.uk quoting the article number.

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2011 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.