Stock Picks – Market Vectors Gold Miners ET-GDX Worth Its Weight in Gold

by Sam Collins | October 29, 2009 7:48 am

 

Market Vectors Gold Miners ETF (GDX[1]) — 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 both the long-term support line and the 200-day moving average at $37. 

 

On Aug. 19[2], at $37.46, I said, “This seems to be an attractive entry point for this ETF, which formed a very bullish cup-and-handle formation[3] and, in March, a gold cross. The target for this investment is $50 to $55. Place a stop-loss at $33.”

Then, on Oct. 5[4], at $43.10, I said, “On Sept. 16, GDX hit a new high at $48 and then succumbed to profit-taking.

“The Oct. 2 close is near to the first major support, the 50-day moving average at $41.75, so first-time buyers may eye this area for a half position.

“Volume[5] on the recent pullback is high but declining, indicating that a climax has or is about to occur. A full position could be initiated below $40.

“The trading target remains unchanged at $50 to $55.”

With a new stochastic buy signal, the target remains unchanged at $55.   

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Source URL: http://www.investorplace.com/2009/10/stock-picks-market-vectors-gold-miners-etf-gdx/
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