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 both the long-term support line and the 200-day moving average at $37.
On Aug. 19, 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 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, 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 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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