Yamana Gold Inc. (USA) (NYSE:AUY) Downtrend Intensifies

Boston, MA, 04/23/2014  (usastockreport) –   Yamana Gold Inc. (USA) (NYSE:AUY) on the daily chart is trading below key support zones and the downtrend seems to have intensified once it broke through the important support zone at $8.25. The stock is currently trading below its 100 day and 50 day moving averages signifying the strong downside momentum. The stock seems to have formed a double top at the $10.65 level which is a bearish sign and we have seen the stock plummet down to current levels. The stock in yesterdays’ trading session tried to pull back from intra-daylows but still closed in the red giving the bears the upper hand.

The stochastic oscillators for Yamana Gold Inc. (USA) (NYSE:AUY) are currently in the oversold zone and are showing first signs of a pullback but the intensity of the downtrend gives us reason to believe that the pullback might be short lived. We believe that for the stock to have any kind of a valid breakout it needs to move above the resistance zone of $8.25 in the short term. The relative strength index has entered the oversold territory but isn’t showing any signs of a recovery. This allows us to believe the absence of inherent strength in the stock at current levels.

On the weekly charts, the stock has broken very important support zones and is trading below its important moving averages. The stochastic and relative strength index for the stock are both showing no signs of a recovery and only a move above the aforementioned resistance zone would signal a buy for the stock in the short term. The correction that Gold has witnessed over the last one week has also played an important role in the selloff witnessed in this counter.


(Figure): Daily chart for Yamana Gold Inc. (USA) (NYSE:AUY)

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