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« Florida Needs More Nuclear Energy | Main | RPT Uranium Corporation: Decent Drill Results »
Tuesday
Jul102007

Mega Uranium: Finds Support

After falling over 43%, Mega Uranium has found a support level at about $5.25 and we are pleased to report that it has bounced back over $6.00, gaining about 14% in the last few days.

Mega Uranium: Finds A Support

We wrote about Mega needing to find a support level on July 5th and now that is has done that, Mega could be set to test its 50 dma and consolidate gains above the 200dma.

By taking a look at Mega's moving averages, we can see that the 50 dma (blue) and the 200 dma (red) are on a collision course. What remains to be seen is if the 50 dma goes below the 200 dma or whether it bounces on the 200 dma line. If the 50 dma breaks down through the 200 dma then we could see some turbulent times for Mega as technical traders may well sell the stock off due to this negative signal. But if it bounces, then we should be Mega making a substantial recovery.

Mega Uranium continues to be marked as a BUY on our uranium stocks portfolio and we see it as a bargain at these prices.

This recently recovery gives us a fair bit of confidence that the majority of the carnage is over for Mega and it can now look to move up higher and catch up with the uranium price.

Mega Uranium has a market capitalisation of $888.69M and trades as MGA on the TSX.

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Reader Comments (3)

I am curious your 50 and 200 day average moving average lines are not even close to mine. Are your lines straight moving or expotenetial?

July 11, 2007 | Unregistered CommenterLarry Helfrich

My moving average charts look identical to those published above, using a one-year time-line. However, using a 3-year time-line, the Stochastic shows Mega has touched just below it's 50 DMA and is currently moving back up. This coincided with a bottoming out on the 3-year Stochastic, which is amazingly similar to numerous other bigger stocks, such as PNP, SXR, & PDN. Therefore, I don't see the action on MEGA being any different than other uranium stocks, so it appears the bottom of this consolidation was reached last week. Let's hope so, and now we can ride the choppy bull back up to previous levels. There are still a few that are staying down, such as STM, KRI, and even UEX, but I expect they will catch up very quickly.

July 11, 2007 | Unregistered Commenterstoneygulch

Larry,

We tend to stick to using the simple moving averages, for 200 and 50 day periods.

You can find out more on moving averages on stock charts by .

Thanks

July 12, 2007 | Unregistered CommenterUranium Stocks

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