Yamana Gold near Key Resistance Area

Published on Monday, 06 February 2012 05:20 Written by TradersHuddle Staff

New York, February 6th (TradersHuddle.com) - Shares of Yamana Gold Inc. (NYSE:AUY) are trading very close to calculated resistance at $17.97 with the current price action closing at just $17.15 placing the stock near levels that make it difficult to buy.

Yamana Gold Inc. (NYSE:AUY) is a Canadian-based gold producer with gold production, development stage properties, expoloration properties, and land positions in Brazil, Chile, Mexico, and Colombia. Yamana prodcued 1.05 million of gold equivalent ounces (GEO) in 2010. It has 4 development projects in Mexico and Brazil, expected to add 440,000 GEO.

Yamana's current stock range is defined by current calculated support defined at $15.06 and by the resistance level at $17.97, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Yamana Gold, as the stock is well above support, however, as the stock pulls back towards $15.06 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $17.97 then traders will get an opportunity to enter Yamana Gold stock by establishing a position as the stock moves to a higher range.