Yamana Gold near Resistance

Published on Friday, 23 July 2010 07:20 Written by Christopher Lynn

New York, July 23rd (TradersHuddle.com) - Shares of Yamana Gold Inc. (NYSE:AUY) are trading very close to calculated resistance at $10.01 with the current price action closing at just $9.54 placing the stock near levels that make it difficult to buy.

Yamana Gold Inc. (NYSE:AUY) is an intermediate gold producer with production, development stage, and exploration properties throughout Brazil. The Canada based company also holds gold exploration properties in Argentina.

Yamana's current stock range is defined by current calculated support defined at $9.16 and by the resistance level at $10.01, 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 $9.16 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 $10.01 then traders will get an opportunity to enter Yamana Gold stock by establishing a position as the stock moves to a higher range.