This Gold Stock Is Set to Shine Again

by Sam Collins | January 31, 2013 1:35 am

Yamana Gold (NYSE:AUY[1]) — This large-cap Canadian gold miner has been recommended several times in the Trade of the Day. The last time was on May 11[2], with the stock at $13.66: “For bottom-fishers, this is a good opportunity to own one of the best mining stocks. Buy AUY as a long-term hold with a price target north of $20.”

On Nov. 9, this stock topped at $20.59, and since then, has fallen to its 200-day moving average at $16.63.

Yamana is expected to earn $0.93 in 2012, $1.45 in 2013, and $1.62 in 2014. Thus far, earnings and production have been consistently in line with expectations.

The technical picture is solid with the stock flashing a buy signal from our proprietary indicator, the Collins-Bollinger Reversal (CBR), in December. It is holding at its bullish support line, and the stochastic is hooking up, which often results in a buy signal. Buy AUY as a solid core holding in the gold mining group.

AUY Chart
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Trade of the Day Chart Key

  1. AUY:
  2. on May 11:

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