Uranium Stocks Continue to Trend Lower - Have a Beer!

By: Merv_Burak

Another small loss for the uranium stocks. Last time we had four in a row the fifth day was the worst. Let's hope that history does not always repeat. The Merv's Daily Uranium Index closed down 0.019 points or 0.59%. The winners perked up a bit with 16 stocks on the up side, 30 stocks on the down side and 4 unchanged. Cameco gained 0.7% while Denison lost 5.1%, First Uranium closed unchanged, Paladin lost 3.1% and Uranium One down 3.2%. The best gainer on the day was Magnum Uranium with a gain of 8.0% while the worst loser was Uracan with a loss of 9.5%.

As far as the intermediate term is concerned I should just copy what I said yesterday. Nothing much has changed from the intermediate term standpoint. Today I show the volume indicator with its intermediate term trigger line. As one can see the indicator is making a new low ahead of the Index making a possible new low. It is never a good sign when the volume indicator is moving ahead of the Index on the down side. It suggests the speculative interest is on the down side. The rating therefore remains BEARISH .

The short term indicators remain the same as yesterday. The aggressive Stochastic Oscillator is now entering its oversold zone and may be preparing the Index for a bounce of some unknown magnitude. For now the short term rating remains unchanged from yesterday, i.e. BEARISH .

I guess one should continue to relax and have a beer. There's a lot of relaxing and a lot of beer drinking but hey, that's better than hanging in there and seeing your capital continue to go south. The uranium stocks will turn around some day and great gains will be made once that happens BUT from what level is an unknown. Readers will remember that my point and figure chart has given two projections yet unattained, one to the 2.7% level (14% from here) and the other to the 1.9 level (that's still 40% away and probably will not be met, but who knows?).

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.

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