AUY finds buyers again around 5.22
Yamana Gold Inc. (AUY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AUY finished the week -0.76% lower at 5.25 after losing $0.04 (-0.76%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading $0.11 higher after the open, Yamana Gold was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, AUY lost -3.82% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AUY as at May 22, 2020):
Friday's trading range has been $0.22 (4.13%), that's slightly below the last trading month's daily average range of $0.25. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AUY.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After having been unable to move lower than 5.18 in the prior session, the stock found buyers again around the same price level today at 5.22.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 5.18 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Yamana Gold. Out of 557 times, AUY closed higher 50.63% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 51.71% with an average market move of 0.90%.