Looking for a gold miner for a trade to the upside? Stocks Under $10 portfolio holding Yamana Gold (AUY) is shaping up nicely.
In this daily chart of AUY, above, we can see that prices turned to the upside in February with several other mining names that we have covered on Real Money. In March the 50-day average crossed above the 200-day average for a bullish golden cross. Prices remain above the rising 50-day and 200-day moving averages.
The On-Balance-Volume (OBV) line has been rising since September but it looks like buyers of AUY became even more aggressive since January as the OBV line rose faster. The rally has been slowing a little looking at the 12-day momentum study but with a strong weekly picture, below, I am not worried.
In this longer-term chart of AUY, above, we can see that prices have turned up along with the slope of the 40-week moving average. The weekly OBV line is rising and confirming the advance. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line telling us to trade AUY from the long side. The MACD oscillator recently signaled a liquidate longs sell but that is likely to flip back to a new buy soon.
A close above $5.50 will be a fresh breakout and give us a longer-term upside target of $11.