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Easily ranking among this year’s top performers in the wider resource space, Canadian uranium mining company Denison Mines (DNN) has witnessed its equity rise about 52% so far this year. What’s even more startling, DNN stock has ripped out a return of almost 110% in the trailing six months. Still, such remarkable rallies don’t last forever. Still, it raises the question: is today’s roughly 2% decline a discount or a sign of greater pain?

Invariably, DNN stock faces corrective pressure. For example, in the trailing month, the security has already popped roughly 20%. In the spring season, DNN was priced only a few cents above a buck. On the fundamental side, the junior miner could suffer setbacks tied to permitting and regulatory delays. As well, geopolitical risks — including the Trump administration’s tariffs — could impose headwinds on the business.

However, it’s also fair to point out that at this juncture, the bulls have enjoyed the more convincing narrative. Broadly, the robust combination of power-sapping data centers — which undergird artificial intelligence and other digital innovations — and the intense desire for reducing supply chain dependencies on geopolitically unstable or adversarial regions has sent DNN stock and its ilk rocketing higher.

Of course, nothing moves in a perfectly linear path northward and many investors have decided to take profits. Along with DNN stock, sector heavyweight Cameco (CCJ) incurred soft trading while NexGen Energy (NXE) fell nearly 5% late Thursday morning. Still, Denison could be an intriguing opportunity over the next few weeks.

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Quantitatively, the trailing 10 weeks have witnessed an accumulation-heavy 7-3-U sequence: seven up weeks, three down weeks, with an overall upward trajectory across the period. Empirically, this sequence has only materialized 17 times on a rolling basis since January 2019. However, in a majority of cases between the second and tenth week, the exceedance ratio (the probability of upside relative to the anchor) favors the bulls.

Historically, in the latter weeks, the median price of outcomes tied specifically to the 7-3-U sequence tends to surge higher. Coincidentally, DNN stock is currently in a near-term consolidation phase, which partially explains today’s weakness. Still, both the fundamental and quantitative data points to potential upside ahead.

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