In our previous report (Oct. 29, 2011 – $15.40) we reported that Yamana Gold Inc. was in the midst of a breakout with targets of $17 and $19. Our first target has been reached and the second is on the horizon. Yamana traded in a large wedge pattern made up of higher lows and lower highs (dashed lines). The recent rise to $17.92 (A) signalled the breakout from this wedge and the resumption of the long-term up-trend. Only a decline below about $14.50 would be negative. Point & Figure measurements provide targets of $19 and $22.
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 web site. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com