Trading Idea: Is Yamana Gold close to Support?
Published on Thursday, 11 April 2013 19:40 Written by TradersHuddle Wire
New York, April 11th (TradersHuddle.com) - Shares of Yamana Gold Inc. (NYSE:AUY) ended the trading session close to calculated support at $13.46, a level that will raise the attention of traders looking for an entry point.
Yamana's stock range is defined by its calculated support defined at $13.46 and by the resistance level at $14.98. This range could be used as a reference by traders planning their next move. The area where buyer interest might materialize is defined as calculated support. Stocks trading near support might see upside if it can successfully hold the technical level. However, this area if breached will signal participants that the stock failed to entice buyers to step in to support it.
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 $14.98 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 $14.10 in the prior 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.