For now, the trend is down for Yamana Gold
. Until the break out above occurs in conjunction with increased prices for TVC:GOLD futures
, then we could be looking at a long-term bull market for Yamana. Current support for NYSE:AUY
is at $2.46. Major support is in the $1.40s. We could see $1.40s again (maybe in May/June) if for some reason gold
slumps again to the $1100/oz. area or below. Consider to go long in that case. If we break out above the two red downtrend lines, then it's likely a bullish
signal. Consider adding or scaling into a long position in that area too, especially if the break occurs on high volume
. If the red downtrend lines remain as resistance and we head lower, consider holding off and wait patiently for an entry point. Assuming you've made an entry, good profit objectives are the purple pitch fan lines. Keep in mind that the numerical values in the pitch fan lines are actually retracements starting from the peak (not the bottom), so it works in reverse. For example, the 0.618 value is actually a 0.382 retracement
(calculated as 1 - 0.618 = 0.382).