Rather than relying solely on past performance, CFRA combines holdings-level analysis with additiona...
Pullback in Gold ETF Offers Traders a Second Chance
01/04/2010 10:49 am EST
Market Vectors Gold Miners ETF (GDX) - This exchange traded fund (ETF), which attempts to replicate the price and yield performance of the Amex Gold Miners Index, is in a bull market with the bull market support line at $44 and the 200-day moving average at $42.
This has been a very successful trading stock for our "Trade of the Day." After initially recommending traders take a half position, our last comment on November 4, with the stock trading at $46.64, was "A full position could be initiated below $40.
The trading target remains unchanged at $50 to $55."
The stock didn't pull back to $40, but did run to $55.40.
Now, GDX appears to be in buying range again after a healthy round of profit taking and a reversal off of its major bull market trend line, coupled with a stochastic buy signal.
The trading target for GDX is $52, but crises or renewed inflation could result in much higher prices.
By Sam Collins of OptionsZone.com
Related Articles on ETFS
This stock market is flailing around like a fish out of water, with whipsaws increasing every week, ...
Despite all the headlines about the trade summit with China, it’s interest rate expectations t...
There has been much ado about "death crosses" among the talking heads of Wall Street, particularly r...