Gold Rush Could Make AUY a Solid Buy

by Sam Collins | July 13, 2011 1:00 am

Yamana Gold (NYSE: AUY[1]) — This large-cap Canadian gold miner made a high at just over $13 in March, but fell to a low of just over $11.25 in June. Since November, the stock has been consolidating in that broad range. 

In late June, Yamana announced a major discovery of gold and copper in Brazil, and yesterday, it broke through its bearish resistance line on high volume and an increase in momentum.

This popular mining operation could benefit from a rush by investors to the perceived safety of gold ownership. A break to new highs is possible with a 12-month target of $15. 

07 13 11 auy Gold Rush Could Make AUY a Solid Buy

chart key Gold Rush Could Make AUY a Solid Buy

 

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Endnotes:
  1. AUY: http://studio-5.financialcontent.com/investplace/quote?Symbol=AUY
  2. Support Must Hold or We Are in Trouble: http://investorplace.com/50117/daily-stock-market-news-support-must-hold-or-we-are-in-trouble/
  3. Market Proves to be Fearless — But Will It Last?: http://investorplace.com/50088/sp-500-index-rth-dow-jones-industrial-average/
  4. Ann Taylor is Out of Fashion, So Short the Stock Now: http://investorplace.com/50082/ann-taylor-stock-retail-sales/
  5. [Image]: https://www.facebook.com/investorplace?sk=app_208195102528120

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