Staying the course on a down dayOn a much smaller volume of...

Staying the course on a down day

On a much smaller volume of around 8m shares traded, we lost a pip to finish on 2.2c. Our VWAP average was 2.26c, closer towards 2.3c still, so that is very good.

ASX U stocks were soft throughout the day. Of the 15 shares I track, average decline was between 3 to 4%.

Overnight US U stocks were also in decline, losing a similar percentage. The U Futures also eased 30c to fall to $64.05. Both these factors, along with ASX being flat and commodities taking a breather, caused this decline.

What next - The whole U sector seems to be in consolidation mode after making some good gains in last few weeks. The expectation is that the sp won't fall much, but now needs another catalyst for the next leg. Will that be U price jump, some sanctions, some news to boost, etc - but I feel we need one. I feel we will continue in this mode before a catalyst arrives, or enough consolidation has happened and shares are ready to move. US U stocks have to provide direction, lets hope we see some forward movement soon.
Good to see that we are strongly holding the 2.2-2.3 mark. The volume today surprised me though - this was the lowest volume in over 2 weeks. I was expecting that the desperate CR sellers would come in drove, but they seem to be holding for now. As I said yesterday, I feel around 55m CR shares have been sold and expect another 25 to 30m now in this phase. But signs are that first stage desperate sellers are in minority now. What it means is that next set of CR sellers would want to sell around 3c with 40-50% gain. If we get a good U day, chances are we may make a move earlier than I thought. Lets see and hope this happens. All the best.