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Yamana Gold Inc. (AUY)

AUY stock forecast: buy or sell

Close on Sep 25th, 2020
$5.61 -0.01%
3 months performance
0.08%
Published: September 27th, 2020 - 17:56

AUY stock outlook

  • Yamana Gold Inc. (Canada) closed on Friday at $5.61 (-0.71%) prior to presenting financial results at
  • From the chart point view, price is drawing an scaled downtrend since early August with lower tops and lower bottoms. shares price lost a -20.09% since the downtrend started.
  • Raymond James posted a neutral rating for Yamana Gold Inc. (Canada) on Thursday, targeting $8.50
  • Yamana Gold Inc., a precious metals producer, explores for and produces gold and silver ores.

Please read:
The comments written in this article are personal and not recommendations for you to buy or sell shares. The author of this paper does not have any knowledge of the individual scenarios of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are published for informational motives only

AUY stock charts

Should I buy Yamana Gold Inc. (Canada) stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is AUY stock a buy?

Currently, Yamana Gold Inc. (Canada) stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for AUY in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Yamana Gold Inc. (Canada) stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies help us to avoid impetuous decisions based on our sentiments or the noise that surrounds the market. When selling, as well as buying, our setups are very easy to follow but are only valid for selling shares in your porfolio, not for shorting AUY stock

As a golden rule, you should never mantain an operation that yields greater losses than those expected at the time of the buy. When to sell shares always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell Yamana Gold Inc. (Canada) stock?

Currently, Yamana Gold Inc. (Canada) stock doesn't match any of our preferred sell setups, so if you hold Yamana Gold Inc. (Canada) stock and your operation is in profit probably is not time to sell now

Analysts' recommendations to buy or sell Yamana Gold Inc. (Canada) stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 2 analyst ratings were published for Yamana Gold Inc. (Canada)

Yamana Gold Inc. (Canada) ratings

Brokerage firmRating
Sep 21st, 2020
Credit Suisse Group Buy
Sep 24th, 2020
Raymond James

Technical analysis

Yamana Gold Inc. (Canada) accumulates a price drop of -20.09% since its latest top early August at $7.02. Like in all downtrends, the stock oscillates drawing lower highs and lows. In this case, we have seen 2 consecutive lower tops

SMAs overview

Moving averages are simple tools for traders to gauge market direction. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

AUY SMAs chart

Supports and resistances

Investors use supports and resistances to find price points in the stock price action that tend to behave as glass ceiling, preventing the price of a stock to move up or down. A support level is a level where the price may stop as it falls. This means that the price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue declining until meeting another support level. On the other side, resistances are where the price may find opposition as it rises. Again, the price is more liable to "rebound" at this level, and if it finally breaches this level, the price will rise easily until it finds the next resistance

The current resistance levels are:

  • R1: $5.63 (0.36% above)
  • R2: $5.74 (2.32% above)
  • R3: $5.78 (3.03% above)
  • The current support levels are:

  • S1: $5.26 (-6.24% below)
  • S2: $5.01 (-10.7% below)
  • S3: $4.97 (-11.41% below)
  • Bollinger bands

    This is an indicator that was developed in the 1980s by John Bollinger. It comprises 3 lines that are plotted superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price broke down the lower band on Wednesday, the price has bounced off by 5.06%. The price is trading near to the lower Bollinger band, indicating some level of oversold in recent sessions. This is not a bullish indicator, as price can trade in these levels for many days and weeks

    AUY RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to map the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 in early August after just crossing to the overbough zone for a single day (weak signal). The RSI reading on Friday was 41.15. Yamana Gold Inc. (Canada) shares dropped a 17.86% since RSI lost the overbought zone

    AUY RSI chart

    Earnings and financials

    In late July, AUY had the investors call and posted the Q2 report. AUY beat market estimates and presented a per-share earnings of %s of $0.07, that is a 133.33% increase compared to the previous forecasts of $0.03. Reported revenues were $303.4 million compared to estimates of $341.0 million.

    This compares to earnings of $0.02 per share a year ago, so posted EPS means an improvement of 250%. Revenue dropped a -34.54% on an annualized basis in the Q2, from $463.5M to $303.4M last quarter.

    AUY presents earnings report. If you own or you are looking to buy AUY shares, be on alert as the earnings reporting day usually has a higher than usual volatility, and price can soar and sink with exceptionally low liquidity and not honouring your buy or stop-loss orders. You can find more information about the earnings call and the earnings reports on the Investor Relations section of its website: http://www.yamana.com.

    AUY revenues and profits chart