Thursday, October 18, 2012

Yamana Gold Inc. (NYSE: AUY)

Yamana Gold Inc. engages in the exploration, development, and production of mineral properties, primarily gold. It also explores for copper, molybdenum, zinc, and silver metals. The company's property portfolio includes seven operating gold mines, including Chapada mine, Jacobina mining complex, and Fazenda Brasileiro mine in Brazil; El Peñón mine and Minera Florida mine in Chile; Gualcamayo mine in Argentina; and Mercedes mine in Mexico. It also has a 12.5% indirect interest in the Alumbrera copper/gold/molybdenum mine in Argentina, as well as holds interests in various advanced and near development stage projects and exploration properties in Brazil, Chile, and Argentina. Yamana Gold Inc. was founded in 2003 and is headquartered in Toronto, Canada.

To review Yamana's stock, please take a look at the 1-year chart of AUY (Yamana Gold, Inc.) below with my added notations:


1-year chart of AUY (Yamana Gold, Inc.)


From January until early September, AUY created a key resistance level at $18 (navy). That resistance level was a 52-week high breakout when the stock broke above it in September. That breakout was a signal that the stock should be moving higher, which the stock did do. Now that AUY is pulling back, the old $18 resistance should provide support for the stock, which it has already done once last month.

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