Gold Miners Finally Shine
This afternoon, all of the leading gold mining stocks are are catching a bid higher. This important stock sector has been extremely weak since peaking out in September 2011. At that time, the important Market Vectors Gold Miners ETF (NYSEARCA:GDX) was trading around the $67.00 area. Today, the GDX is trading higher by 0.86 cents to $43.03 a share. What a difference eight months can make for the GDX. The big question that traders are asking themselves, is this the low for the GDX? The truth is that the trend is down and this bounce today should really not be viewed as anything more than an oversold bounce. Until the GDX can recapture the important daily chart 50 moving average the ETF remains in a vulnerable technical position. The GDX will have intra-day resistance around the $36.00, and $36.50 levels.
Some leading gold mining stocks that are trading higher today include Newmont Mining Corporation
(NYSE:NEM), Vista Gold Corp (NYSEAMEX:VGZ), Allied Nevada Gold Corp. (NYSEAMEX:ANV), and Yamana Gold Inc. (USA) (NYSE:AUY). All of these stocks have similar chart patterns to the GDX, therefore, until these stocks can have another day of upside this bounce may not last very long.