Uranium One, Inc. (TSE:UUU) (PINK:SXRZF) stock price started rolling down despite the bullish start of the week.
UUU is correcting back down after a two days of solid price rally. The stock currently has support at $2.88 and if it holds the price action might lead to consolidation period. The trading volume wasn’t anything special during the rally, which basically called for a correction to happen.
The price has been going down since February this year. Even though it went back up 20% on the recent move, it was just a small tick on the scale of the extended downtrend. The stock is also prone of consolidation periods due to large scale and comparatively fast drops that happened this year. Prolonged period of stock distribution among traders is a natural occurrence is such cases.
Uranium One had no news since June 7, 2011 when the company announced they acquired Mantra Resources Ltd. and also became an operator of Mkuju River Project in Tanzania.
The lack of positive news, which would serve a catalyst, is affecting the current mood of bulls. Looking from the fundamental side, the company holds a market cap of $2.79 billion, which is only 1.47 times the net tangible assets of the company. This favors the bulls, especially with increasing quarterly revenues and recorded profit in the last reported quarter.
