DNNDenison Mines Corp. presents a long-term technical picture where it appears to be forming a "rounded bottom" pattern, which is a positive indicator for a possible upward movement in the future. This pattern refers to a long-term base formed after a long-term decline, followed by stabilization and future growth.
Points of Interest:
Resistance Area : The area around $2.20 - $2.50 is a critical resistance zone, where the price seems to be trying to break out. If the breakout is successful, it can be made into a further up move.
Strong Support : We see a strong support area at $1.20, which is the low of the recent rally.
RSI : The RSI indicator is seeing a bearish divergence, indicating a possible short-term correction. However, it remains relatively strong, indicating that the long-term trend remains up.
Recovery Cycle: The upward curve from the 2020 lows shows the stock's gradual recovery, suggesting that buyers continue to strengthen the price.
Estimate for the Future:
The long-term technical outlook for Denison Mines Corp. it shows positive, with the possibility of breaking the critical resistance and continuing the upward trend. If the price manages to stay above $2.20, there is a possibility of a move towards higher levels near $4.00, which is the next major resistance. However, short-term investors should be wary of corrections as the RSI indicates potential pressure
This analysis indicates that the company could have a long-term growth, especially good case that it provides positive propositions in the energy and raw materials sector, where Denison Mines operates.
