The continued depression in uranium prices has been a major factor behind the poor performance of the Denison Mines Corp (NYSEAMERICAN:DNN) stock and it continued this morning as the stock slumped by 8%.
In this situation, it might be a good idea for investors to look into the Denison stock a bit more closely. While it is true that there is considerable optimism about nuclear power and the important of uranium to generate it, it should be noted that Denison is struggling in its uranium business.
The company has not only suffered from the shutdowns caused by the COVID 19 pandemic but the operating costs of uranium mining have also been spiralling. In this sort of situation, it has become increasingly difficult to justify the valuation commanded by the Denison Mines stock. While there is rising interest in nuclear energy, the demand for Uranium is going to be struck at 178 million pounds according to research from UxC. That is less than the 2020 demand of 181 million pounds and this state of affairs is not particularly favourable for Denison.
Technical Indicators
| Symbol | Value | Result | Symbol | Value | Result |
| ADX | 32.0302 | Buy | ATR14 | 0.0967 | |
| CCI20 | 112.7158 | Buy | Chaikin Money Flow | 0.0895 | Buy |
| MACD | 0.0776 | Buy | Money Flow Index | 57.9796 | Sell |
| ROC | 24.7788 | Buy | RSI | 61.7947 | Sell |
| STOCH (14,3) | 78.3784 | Sell | STOCH RSI | 0.4682 | Neutral |
| UO | 60.1140 | Buy | Williams %R | -21.6216 | Neutral |
Pivot Points
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
| Classic | 1.3333 | 1.3567 | 1.3833 | 1.4067 | 1.4333 | 1.4567 | 1.4833 |
| Fibonacci | 1.3567 | 1.3758 | 1.3876 | 1.4067 | 1.4258 | 1.4376 | 1.4567 |
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