Market Vectors Gold Miners ETF (NYSE: GDX) — This exchange-traded fund (ETF) seeks to replicate the price and yield performance of the Amex Gold Miners Index. About 80% of its total assets are in the common stocks of companies in the gold mining industry.
Gold has been a strong performer for almost all of 2010, and this week it again broke to new highs. With gold close to $1,300 an ounce, gold mining companies are returning big gains and dividends.
Yesterday, GDX broke through the top of a resistance line at $54.50 from an ascending triangle. This is a powerful break with a target of $64.
But with the stochastic overbought and near-term profit-taking likely, it may be wise to take a half position now and a full position on a pullback below $53.
If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.
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