Merv's Weekly Commentary, 30 Mar 2008

Merv’s Weekly Uranium Review
for week ending 28 Mar 2008

I’m a little behind schedule so right to it. The Merv’s Daily Uranium Index closed on Friday with a daily loss of 0.059 points or 2.07%. There were only 7 winners on the day and 38 losers, with 5 unchanged. Of the five largest stock, all lost ground on Friday. Cameco lost 0.9%, Denison lost 5.4%, First Uranium lost 2.6%, Paladin lost 0.6% and Uranium One lost 5.1%. The best daily gainer was Yellowcake Mining with a gain of 17.0% while the largest loser on the day was Western Prospector with a loss of 9.7%.

As for the week that was, the Merv’s Weekly Uranium Index closed the week with a minor gain of 46.91 points or 0.66%. The Daily Index also showed a slight gain overall for the week. There were 20 winners and 25 losers with 5 unchanged. The five largest stocks were mixed on the week. Cameco gained 1.0%, Denison lost 7.9%, First Uranium lost 1.7%, Paladin gained 5.3% and Uranium One lost 16.2%. The best weekly gainer was Hathor Exploration with a 34.7% gain while the worst loser was Energy Fuels with a loss of 18.1%.

The charts and indicators remain unchanged on the long term. Using the weekly long term chart and indicators, the Index remains below its long term moving average line and the line continues to slope downwards. The long term momentum indicator remains in its negative zone. The action remains inside a wide large wedge pattern. This pattern, although bullish, is not expected to be broken on the up side for confirmation for some time. The long term rating remains BEARISH.

Nothing has yet changed on the intermediate term. The Daily Index remains below its negative sloping moving average line and the momentum indicator remains in its negative zone below its negative trigger line. Although the volume indicator is below its negative sloping trigger line the indicator itself is more in a lateral drift than a downward trend. The intermediate term rating remains BEARISH.

On the short term the Index just touched the short term moving average line on Thursday but is now reacting lower. The line continues to point downward. As for the short term momentum indicator, it remains in the negative zone and has once more moved below its negative trigger line and into its oversold zone. The short term rating remains BEARISH.

On the more aggressive side, the Index remains below its negative sloping very short term moving average line (8 DMAw) while the Stochastic Oscillator remains in its positive zone above its positive trigger line. This gives me a very short term rating as – NEUTRAL.

I know it’s getting frustrating waiting for the uranium stocks to really get going again but the kill goes to the hunter who watches and waits for the right time and then stomps on his target. I’m one for waiting for the right time and then go for it, but the time is not yet ripe.