Trading Idea: Entry Levels for Yamana Gold

Published on Wednesday, 24 October 2012 05:20 Written by TradersHuddle Wire

New York, October 24th (TradersHuddle.com) - Shares of Yamana Gold Inc. (NYSE:AUY) are trading very close to calculated support at $18.35 with price action closing at just $18.75 and placing the stock near levels where traders will start paying attention.

Yamana's stock range is defined by its calculated support defined at $18.35 and by the resistance level at $19.82, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to Yamana's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $19.82 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

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.