I must confess that although I do own some Yamana Gold, I am not a great fan of Gold Stocks. I have made money on this stock and continue to hold it but I find Gold stocks not too predictable IMHO
Gold is supposed to be a safe haven in times of trouble, but frankly everytime there is a financial crisis it seems Gold tanks as well. Also while the price of gold has risen greatly in the past year or so, Gold stock share prices don't seem to be keeping in lock-step with them. Finally, gold has little industrial value it is used mainly in Jewelery....platinum is a much better precious metal since it has industrial uses as well as jewelery.
Yamana is supposed to be a good buy though as far as Canadian gold stocks are concerned...so is Goldcorp (G.to) and Kinross Gold Corp. (K.to or KGC on the NYSE)
Here is my take on the TA
The SharpCharp looks basically like that shown in the Yahoo Chart provided by SA
The SharpChart from StockCharts.com shows that the Stock has fallen in the last month from a high of about $19.00 down to $14.50...along the way it has broken its 50dayMA in a negative way but seems to have found a strong support level at $14.50
The Accum/Dist indicates a rather neutral pattern and the TRIX(15,9) looks like it could possibly be bottoming now after the fall....both good signs for recovery
The RSI is less than 50% and fairly flat at the moment.
Here is the P&F chart for GOLD with the P&F chart for YRI.TO beside it.
You can see that Yamana's share price tracks gold pretty well...an what is gold doing now???? tanking a bit in my opinion....I guess these must be good economic times...no need for a safe haven
Ok...seriously now
Both Gold and Yamana are bearish right now
Gold broke a strong support line at $925...tried to recover but failed. The support level for Gold is $900/oz...Break this significantly and we are falling further to another support at $890/oz
Yamana broke a strong support line at $16.00 and falls further to $14.50 where (from the SharpChart) you can see it bounce off of this level for the past few days....so we have a Support level of $14.50 for the time being if it falls through that we are looking for support around $12.50
So....in conclusion....is Yamana a buy right now....
I don't think so. I will hold it since I believe it will recover and I bought it at about $10 in Aug of last year...probably should have sold it at $19 or so but got greedy {sigh}
The company is well run by all accounts and has made acquistions and plans expansion and upgrades to existing mine. There are detail in their financial report below
Yamana Gold Reports Fourth Quarter and Year End Results-Record 2007 Revenue and Earnings, Increased Mineral Reserves, Operational and Exploration Update: Financial News - Yahoo! Finance
Short Term look
Here is a 5 day line chart from Yahoo
You can see that the BB's are tight as a drinking straw. Monday April 21 will see a big break. It is a close call but I would say it will initiall fall at the open of the day....the share price is lower than the 50/200minMA...If I was betting on a rise in Share price I'd wait a few hours to look at the direction it goes.
If I were to consider buying it now I would set a bid for somewhere around $12.50 - $13.00. I don't think this support at $14.50 will hold for long...(Gold is not looking to rise soon to me) though I have been wrong many times so do your DD and set your own level if you want to get in...this is supposed to be a $25+/share company at some point in time