Gold Mining Stocks Must Be Traded
There are so many traders and investors that believe that the gold mining stocks will automatically trade along with gold, the precious metal; this is not always the case. Every stock has its own set of issues that it will face. Very often the price of gold and the gold mining stocks will trade in tandem with each other, however, there will be times when the mining stocks will lag and other times when they will lead the price of gold. Each different gold mining stock must be followed and watched closely on an individual basis.
These days the Market Vectors Gold Miners ETF (NYSE:GDX) is beginning to form a sideways bullish base on the daily chart. This type of pattern could setup for another leg higher. The problem with the GDX is that it is still trading below the daily chart 50, and 200 moving averages. These important moving averages will be the next important daily chart resistance levels for the GDX. Short term traders can watch for intra-day resistance around the $54.25, and $54.65 levels.
Some leading gold mining stocks that are trading slightly higher this morning include Yamana Gold Inc (NYSE:AUY), Goldcorp Inc (NYSE:GG), and Royal Gold Inc (NASDAQ:RGLD). Traders must remember that these stocks will not always follow the price of gold and will trade according to their own cycle.