Yamana Gold Tight Range between the 50 and 200Day

Published on Monday, 30 August 2010 04:20 Written by Danny Miller

New York, August 30th (TradersHuddle.com) - Shares of Yamana Gold Inc. (NYSE:AUY) closed the trading session at $10.29 near its 50 day and 200 day moving averages currently set at $9.88 and $10.77 respectively. Yamana's price action is above the 50 day moving average but below its 200 day moving average, which provide a nice trading setup, with clear reference points.

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 Gold price action seems to be setting up for a tight range between the 50 day moving average as support and the 200 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Yamana Gold with a small position and wait for the stock to break out above the 200 day moving average at $10.77, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 50 day moving average set at $9.88 breaks it could mean further downside in the horizon for Yamana Gold.