Trading Idea - Is Yamana Gold close to Support?

Published on Wednesday, 01 September 2010 04:16 Written by Christopher Lynn

New York, September 1st (TradersHuddle.com) - Shares of Yamana Gold Inc. (NYSE:AUY) are trading very close to calculated support at $9.78 with current price action closing at just $10.11 places the stock price near levels where traders will start paying attention.

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 $9.78 and by the resistance level at $10.41, which should be used by traders planning their trades.

Traders wanting to establish a position should place 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 $10.41 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.