Watching Gold

I like to follow gold (who doesn't) and my favorite gold play is AUY, Yamana Gold, a Canadian miner. Why AUY? Mostly because it's a lot cheaper than GLD or the other miners, but not too cheap. It also has a reasonable P/E of around 22.5. I can afford to add to positions in AUY that I couldn't do otherwise. At 10.19 right now, I'm watching it closely because I think it may be a buy by tomorrow:


AUY has established some pretty decent support at 10.00 going back to last September. 10 is also the lower Bollinger band. It topped three days ago and has been falling steadily since then. As it falls, volume is decreasing. Eventually, we will run out of sellers and it will start back up again. The stochastic (lower indicator) is also approaching levels associated with a bottom. I'll be looking to get into AUY pretty soon.

Disclaimer: I currently hold no position in AUY, though I do trade it regularly.