Yamana Gold (YRI.TO) spent the summer drifting downward within the SIA S&P/TSX Composite Index Report, sliding from the Green Zone in May down into the red zone where it languished from July to September. In the last few days, the shares have soared back up the relative strength rankings and have returned to the Green Favored Zone this week. Yamana finished yesterday in 34th place, up 17 spots on the day and up 135 positions in the last month.
A dramatic turnaround is underway in Yamana Gold (YRI.TO) shares. After a winter rally topped out in April, the shares spent five months under distribution, steadily declining in a falling channel of lower highs and lower lows. The tide has turned dramatically in the last two weeks with the shares finding support near $5.25, then blasting off, driving up through their 50-day average, snapping a downtrend line that also completed a bullish Falling Wedge reversal, and carrying on up toward $6.75.
Potential upside resistance appears near $7.30 and $7.90 based on previous peaks. Initial support appears near $6.50, the August high and another recent breakout point.
Yamana Gold (YRI.TO) has clearly come under renewed accumulation. A summer downtrend was finally contained by previous support near $5.25. In recent days, the shares have rocketed back upward. First, completing a bullish Bear Trap reversal, then staging two positive pattern breakouts, a bullish Double Top and a bullish Spread Double Top, snapping a downtrend line, and extending the current X column into its largest bullish High Pole since last winter.
Previous peaks suggest potential resistance near $7.25, $7.85, and $8.66 on trend. A horizontal count measures toward $7.70. Initial support appears near $6.30, based on a 3-box reversal and a retest of a recent breakout point.
With its SMAX score jumping from 2 last week to a bullish 7 today, YRI.TO is exhibiting strength against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.