AUY closes below its opening price unable to hold early session gains
Yamana Gold Inc. (AUY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AUY ended Thursday at 3.26 edging lower $0.02 (-0.61%), significantly underperforming the S&P 500 (6.24%). Trading $0.17 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 19th, AUY lost -8.54% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AUY as at Mar 26, 2020):
Thursday's trading range has been $0.35 (10.45%), that's slightly below the last trading month's daily average range of $0.46. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AUY. Prices continued to consolidate within a tight trading range between 2.98 and 3.52 where it has been caught now for the last three trading days.
After spiking up to 3.52 during the day, the share found resistance at the 20-day moving average at 3.48.
Although Yamana Gold is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 3.65 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for Yamana Gold. Out of 53 times, AUY closed lower 50.94% 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 56.60% with an average market move of -2.08%.