I have not included any technical indicators in the chart above, however, I do want to note they all are arguably bullish. The focus of the chart above is the break out of a triangle that formed since 2008.
The upside potential if this leg is the same size as the previous up move is around $22-23. However, it is likely if gold does get moving, $32 is not out of the question. Also an interesting note if you take the same size move from the 2003 lows to the 2008 highs, the move exactly ends at the recapturing of the center line in the andrews pitch fork ( or channel lines). Typically if this is the start of a bullish move, the price will be contained within the andrews pitchfork trend lines. typically oscillating around the center line. This is an indication of how undervalued this stock really is.
The month has just started, however if the price can hold on and remain above the breakout level, this market could move very quickly to the upside.
Looking at another gold player Barrick, see how the center-line has already been captured, another piece of evidence to show how undervalued Yamana is.
No comments:
Post a Comment