With gold mining companies continuing to show short-term
weakness - look at the continued oversold conditions in the
Market Vectors Junior Gold Miners ETF
) - here are three mining companies from the Nasdaq that have begun
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
). 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,
) 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
Heading into trading on Tuesday, RGLD has a positive, short-term
edge of half a percent.
Southern Copper Corp
) 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.
to learn more.
is Editor in Chief of TradingMarkets.com