Mine for Profits in Gold ETF

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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.

GDX Chart

Chart Key

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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: Investing , Stocks

Referenced Stocks: ETF , GDX

Sam Collins

Sam Collins

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