Thursday, October 1, 2009 at 10:00PM
Having put in a reasonable rally in the first half of September Denison Mines Corporation (DNN) has fallen back from $2.10 to close yesterday at $1.67, including a decrease of 10.22% in just one day.
Despite trying to rally, consolidation would appear to be the order of the day with rallies being followed by retractions. DNN has gone from $1.30 to $2.10 and almost back again in just one month. For traders this sort of volatility offers opportunities to 'play' this stock, however as a longer term investor this is underwhelming to watch a pattern of consolidation unfold. Maybe better things lie around the corner and its just a case of wait and see for now.
The spot price of uranium has drifted down to $42/lb which puts a damper on uranium stocks even thought the longer term price remains steady at $70/lb according to TradeTech.
With one or two exceptions such as Extract Resources Limited (ASX/TSX: EXT) this tiny sector would appear to be in the shadow of its glittering stable mate, gold, which is currently flirting with its all time high.
We will observe the seesaw action of some of these stocks and maybe take a swipe at the odd trading opportunity in the near future.
Denison Mines Corporation trades on the AMEX under the symbol of DNN and on the Toronto Stock Exchange as DML.
Market capitalization is $567.33 million, average volume is 1.2 million shares traded, 52 week high $3.30, 52 week low $0.54, closed yesterday at $1.67.
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