AUY tanks, losing $0.20 (-8.03%) within a single day on high volume
Yamana Gold Inc. (AUY) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AUY finished Tuesday at 2.29 tanking $0.20 (-8.03%) on high volume, significantly underperforming the S&P 500 (0.05%). This is the biggest single-day loss in over three months. Today's close at 2.29 marks the lowest recorded closing price since December 19, 2018. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 2.41, the share confirmed its breakout through the previous session low after trading up to $0.13 below it intraday.
Daily Candlestick Chart (AUY as at Apr 16, 2019):
Tuesday's trading range has been $0.17 (7.02%), that's far above the last trading month's daily average range of $0.09. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AUY.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on April 3rd, AUY actually gained 3.20% on the following trading day.
The stock closed below the 100-day moving average at 2.48 for the first time since January 22nd.
Crossing below the lower Bollinger Band for the first time since March 1st, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 2.59 or signal the beginning of a strong momentum breakout leading to even lower prices.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R2" stand out. Its common bearish interpretation has been confirmed for Yamana Gold. Out of 17 times, AUY closed lower 52.94% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.94% with an average market move of 0.35%.