Trading Idea - Key levels for Yamana Gold

Published on Thursday, 09 February 2012 05:20 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of Yamana Gold Inc. (NYSE:AUY) ended close to calculated support at $16.46 with current price action placing the stock near levels that will raise attention of traders looking for an entry point.

Yamana's current stock range is defined by current calculated support defined at $16.46 and by the resistance level at $17.97, which could be used as a reference by traders planning their trades. The area defined as calculated support, is where buying might materialize, which could provide a lift to shares of Yamana Gold Inc.. However, this area if breached will signal participants that the stock failed to entice buyers to step in and 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 $17.97 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

Shares of Yamana Gold Inc. closed at $16.62 in the previous trading session.

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.