With the relative strength of gold producers improving recently, Yamana Gold has bounced back over the last month from a dip down into the red zone of the SIA S&P/TSX Composite Index Report, returning to the Green Favored Zone yesterday after moving up 3 spots to 57th place.
Between July and November, Yamana Gold (YRI.TO) shares carved out a bullish Saucer Bottom base and snapped out of a previous downtrend. Earlier this month, YRI.TO established a higher low near $6.50 then launched up off of it, breaking through $7.00 to complete the base and confirm the start of a new uptrend.
Initial resistance appears at the April peak near $7.75, then the $8.50 to $8.75 zone based on a measured moved. Initial support has moved up toward $6.90 from $6.50.
After spending the middle months of this year trending downward, Yamana Gold (YRI.TO) shares have been on the rebound since bottoming out in September. Over the last two months, YRI.TO has snapped out of a downtrend, established a new uptrend of higher lows, and completed a series of positive patterns including Double Tops and Spread Double Tops.
Initial upside resistance appears near $7.75 where the April peak and a horizontal count converge, followed by $8.25 based on a vertical count. Initial support appears near $6.80 based on a 3-box reversal.
With a bullish SMAX score of 9, YRI.TO is exhibiting strength against the asset classes.
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