3 Nasdaq Miners for Active Investors


With gold mining companies continuing to show short-term weakness - look at the continued oversold conditions in the Market Vectors Junior Gold Miners ETF ( GDXJ ) - here are three mining companies from the Nasdaq that have begun to pull back to levels where buyers historically have been lured off the sidelines and into the market, bidding shares higher.

Closing lower for four days in a row before bouncing by a third of a percent on Monday were shares of Randgold Resources Ltd ( GOLD ). The stock traded new, short-term lows in Monday's trading, but managed to climb back out of technically oversold territory to finish in neutral.

As such, shares of GOLD have neutral ratings of 7 out of 10, and a positive edge in the short-term of three-quarters of a percent. Note that the last time shares of Randgold were as oversold as they have been was in late December. Then, a sell-off during which the stock fell for four out of five days led to three-day rally and a gain of well over 7%.

And with a brief bullish respite on Friday, Royal Gold ( RGLD ) shares continue to trade drift up and out of technically oversold territory above the 200-day moving average. RGLD had closed lower for six consecutive sessions before buyers began to return to the market on Friday and again on Monday.

Like Randgold, shares of Royal Gold were last significantly oversold in late December. After pulling back for three out of four days near the end of the month, RGLD rallied by more than 5% over the next three days and were trading at new, short-term highs seven days later.

Heading into trading on Tuesday, RGLD has a positive, short-term edge of half a percent.

Southern Copper Corp ( SCCO ) is the lone, non-gold mining miner in today's report. SCCO has pulled back for three days in a row , setting new, short-term lows over the past two trading days. With a positive edge of more than one and a half percent in the short-term, SCCO has finished the most recent two sessions in technically oversold territory.

Unlike GOLD and RGLD above, SCCO is only recently returned to bull market territory, having climbed back above its 200-day moving average late in the first half of January.

Coming Spring 2012: the second edition of by Larry Connors and Cesar Alvarez. Click here to learn more.

David Penn is Editor in Chief of TradingMarkets.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Stocks

Referenced Stocks: GDXJ , GOLD , RGLD , SCCO

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