This Gold ETF Is Bouncing Off Support
03/31/2010 12:01 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 support line at $43 and the 200-day moving average at $44.
This has been a recurring trading stock for our “Trade of the Day” throughout the past year.
Following a run in September from $40 to $55, GDX pulled back in a series of steps until finding support at the 200-day moving average. It penetrated that major indicator, but then reversed and flashed a double Collins-Bollinger reversal buy signal (our internal indicator), moving up through the three major moving averages (20-, 50-, and 200-day) and an intermediate resistance trend line.
GDX appears to be in buying range with a trading target of $50-plus and a long-term target of $65. Gold futures flashed a strong buy last week, adding support to our trading target for GDX.
By Sam Collins of OptionsZone.com