Today we acquired a few more shares in Yamana Gold Incorporated for an average price of $14.95 as gold added another $18.20 on top of yesterday’s gain of $13.40 to close at $964.60.
Yamana Gold’s stock hit $17.00 recently but then suffered at the hands of the profit takers which drove the stock down. On top of that yesterdays preliminary results were greeted with a bit of a yawn. So, we took another look at Yamana and decided that it was oversold and therefore presented us with a buying opportunity. The day opened with Yamana and many other gold stocks on a tear with prices higher then we wanted to pay, so we waited patiently. However Yamana appeared to be in no mood to please us so we met the market and bought.
Taking a quick look at the chart we can see that Yamana Gold had lost around $3.00 during its recent sell off, however it landed on the its 200dma and bounced today. We can also see that the technical indicators, especially the STO and the RSI, are in the oversold zone which suggests to us that the downside is now limited.
This investment is part of our exercise to deploy our ‘opportunity cash’ over the summer period in readiness for what we see as continuing strength in both gold and silver as they go on to challenge their previous highs.
Have a sparkling day.
Yamana Gold Incorporated trades as AUY on the NYSE and as YRI in Toronto.
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