Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

 

Search Gold Prices
Gold Price
[Most Recent Quotes from www.kitco.com]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« Silverado Green Fuels update | Main | Buy in May or Face Dismay? »
Monday
Jul232007

Yamana Gold: Approaching Crunch Point

Yamana Gold: Approaching Crunch Point

Yamana Gold took a bit of a hit recently as investors sold shares on the back of news that Yamana might be taking over Meridian Gold.

Yamana has made a slight recovery but now, technically speaking, the stock is rapidly approaching what we have dubbed the “Crunch Point”.

If you take a look at the chart above, you will notice that the recent decline in Yamana's stock price has caused its 50dma to drop down on to the 200 day moving average. A break down through the 200dma would send a bearish short term signal on Yamana Gold but longer term the fundamentals are still in place for Yamana to soar.

Alternatively, a more positive scenario for shareholders is that the 50dma could bounce on the 200dma, sending a positive sign to the market and could allow Yamana to continue its rally.

We will watch this situation closely and keep our readers informed on any significant developments. Either way, the fundamentals of this stock are still great and will only improve as gold prices continue their ascent to our target of $1000/ounce.

Yamana Gold is still a BUY in our gold portfolio and the company trades as AUY on the NYSE and as YRI on the TSX as well as YAU in London.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>