One long-time Real Money reader asked me for an example of a stock with a long base formation, which we mentioned in Part 1 of our 2021 forecast piece.
Yamana Gold (AUY) fits the picture.
In this weekly bar chart of AUY, below, we can see the large base pattern going back to 2015. The 11-quarter "count" starts in 2017. Notice how strong the On-Balance-Volume (OBV) line has been since 2019 as well as the rising 40-week moving average line.
Trading volume has been increasing since 2018.
In this first Point and Figure chart of AUY, below, we used daily price data. Notice the base and the recent upside breakout at $6. A $10 price target is indicated.
In this second Point and Figure chart of AUY, below, we used weekly price data, which shows a $16 target.
Bottom-line strategy: AUY and other mining names have made big bottoms that can support big advances in 2021 and 2022. Use your time off over the holiday to drill down and find them.
