Yamana Gold Inc. declined from $19.79 to $4.29 (A-B), had a recovery rally to $15 (C) and then settled in a trading range between $10 and $13 (dashed lines). Subsequently the stock had a sharp rise to $17.39 (D) followed by a large trading range between $13.50 and $18 (dotted lines). This price action produced a bullish pattern known as a Duplex Horizontal. Recent price action signalled the breakout (E). A minor correction may occur. Only a decline below about $16 would be negative. Point & Figure measurements provide targets of $24 and $27. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
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