Denison Mines Corporation: Options update!
Sunday, August 24, 2008 at 1:21AM
Uranium Stocks in Uranium Mining Stocks
Having bought the JAN09 Call Options of Denison Mines Corporation at a strike price of $7.50 for $1.10 per contract the underlying stock price promptly fell out of bed.

However, having traded as low as $5.00 a slight recovery can be detected as this uranium stock managed to climb back to $6.00 before closing on Friday at $5.79. From the chart we can see that the MACD has turned positive, the Stochastics are heading north and the RSI is just below the middle of its range. Hopefully we will see some improvement in the coming weeks.

In general the uranium market place appears to be fairly lacklustre at the moment with not a lot of news in either the bullish or bear camps. TradeTech is still reporting that the spot price is holding steady at $64.5/lb along with a few rumblings that things may improve in the near future. Over at Nymex the December Futures Contract was last traded at $72.0/lb.

For now we will just have to be patient with Denison and monitor its progress as we move towards the expiry date.

Have a good one.

Denison Mines Corporation trades as DML on the TSX and DNN on the AMEX, has a market capitalisation of C$1.25 billion, a P/E of 31.75 with 189.78 shares outstanding.
Have a good one.
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