Deep Yellow (DYL) is a uranium company developing assets in both Namibia and Western Australia.
“DYL’s share price has been volatile these past few years,” Michael said.
It rallied hard in 2021 when everything in the small-cap space was going up, but it then gave back most of its gains.
“The past few months have seen it rally once again on the back of a strong increase in uranium prices.
“A lack of supply since the Fukishima accident in 2011 is now being met by renewed demand.
“The recent rally has seen it hit the 2021 peak and it is now consolidating.
“The question is whether there is more upside in these uranium stocks.
“We can see that this consolidation is now forming that of a symmetrical triangle, while we await the next move.
“An upside break beyond $1.35 would be the next buy trigger.
“A daily close back near $1.20 would be a negative sign and would be the signal to sell,” Michael said.
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