Merv's Weekly Commentary, 31 May 2008

Merv’s Weekly Uranium Review
for week ending 23 May 2008

Daily Index data

DATE OPEN HIGH LOW CLOSE VOL
5/26/2008 305.58 312.10 300.74 307.86 2690
5/27/2008 308.24 310.41 294.72 300.37 4133
5/28/2008 300.08 309.56 294.70 304.99 3771
5/29/2008 303.87 308.19 293.83 297.96 3621
5/30/2008 300.07 306.90 293.94 301.11 5187

Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.

Other than some individual stocks it has been a relatively mild week in the uranium markets as one can see by the slight move of the Daily Index. The price of uranium was unchanged again. This is two or three weeks now that the price of uranium has stabilized and just might be a bottom, BUT let’s wait for it to start higher.

For the next few weeks my commentaries may be somewhat simplified due to illness in the family that will be taking my time.

Friday was a nominal up day with the Merv’s Daily Uranium Index closing higher by 3.16 points or 1.06%. There were 28 daily winners, 14 daily losers and 8 unchanged. As for the five largest stocks, they all were on the plus side. Cameco gained 1.6%, Denison gained 2.2%, First Uranium gained 1.3%, Paladin gained 0.7% and Uranium One gained 2.5%. The best daily gainer was Yellowcake Mining with a gain of 17.3% while the worst daily loser was Xemplar Energy with a loss of 11.4%.

On the week the Merv’s Weekly Uranium Index closed at 7482.93, down 117.31 points or 1.54%. There were 21 weekly winners, 26 weekly losers and 3 unchanged. There was only one weekly loser out of the five largest stocks. Cameco gained 0.4%, Denison gained 0.9%, First Uranium lost 8.0%, Paladin gained 1.3% and Uranium One gained 6.2%. The best weekly gainer was UEX Corp. with a gain of 15.6% while the worst weekly loser was Tournigan Energy with a loss of 22.7%.

Long term, the week has not seen any change in the indicators and rating. The Index is still below its negative sloping long term moving average line. The momentum indicator is still in its negative zone although it has been moving higher and remains above its positive sloping trigger line. The volume indicator continues to move above its positive trigger line but not with any great vigor. Despite the positive volume indicator the long term rating remains BEARISH.

On the intermediate term the Index continues to move above its positive moving average line. The momentum indicator continues just below its neutral line in the negative zone. The momentum trigger line is battling with the indicator but remains just a hair below the indicator but with a positive slope. The volume indicator remains above its positive trigger line. The intermediate term rating remains BULLISH.

The short term is very close to some direction changes. At the Friday close the Index moved just a hair above a positive sloping moving average line. The Index had been below the line for one day without the line changing its positive direction. The short term momentum indicator is moving lower and is below its negative sloping trigger line but remains in its positive zone. The daily volume activity during the past several days has been relatively low, which may be seen as a positive sign. All in all, the short term is still rated as BULLISH.

As for the immediate direction of action, although the closing price has meandered somewhat over the past few days the daily high continued to get lower and lower each day. The very short term moving average is pointing lower and the Index remains below it. The Stochastic Oscillator has moved into its negative zone and remains below its negative trigger line. The direction of least resistance is therefore to the down side. One interesting feature of the past several days of action is the compact nature of the Index. This seems to suggest speculators taking a rest getting ready for the next move, which could be up or down, although I would venture a guess that the next Index thrust will continue into the up side.