Yamana Gold near Key Support Area

Published on Wednesday, 18 January 2012 07:12 Written by Christopher Lynn

New York, January 18th (TradersHuddle.com) - Shares of Yamana Gold Inc. (NYSE:AUY) finished near calculated support at $14.73.

Current price action with, the Canadian-based gold producer with exploration properties in Mexico and South America closed at $15.49 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.

Yamana's current stock range is defined by current calculated support defined at $14.73 and by the resistance level at $16.16.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay close attention to Yamana's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $16.16 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.