New York, June 7th (TradersHuddle.com) - Shares of Yamana Gold Inc. (NYSE:AUY) closed the trading session at $12.15 near its 50 day and 200 day moving averages currently set at $12.42 and $11.82 respectively. Yamana's price action is above the 200 day moving average but below its 50 day moving average, signaling a possible break out.
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.
Yamana Gold price action seems to be setting up for a tight range between the 200 day moving average as support and the 50 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 50 day moving average at $12.42, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 200 day moving average set at $11.82 breaks it could mean further downside in the horizon for Yamana Gold.
