By Chris Puplava Created 4 Aug 2010
The Market Vectors Gold Miners (GDX) exchange traded fund has attempted three times in the past year to exceed its 2008 highs but has failed on each attempt. Prior attempts occurred after prolonged rallies that had exhausted much of their energy just to reach the 2008 high. However, in the present case the GDX is oversold on an intermediate basis and yet it is only a stone’s throw away from its former all-time high.
The Market Vectors Gold Miners (GDX) exchange traded fund has attempted three times in the past year to exceed its 2008 highs but has failed on each attempt. Prior attempts occurred after prolonged rallies that had exhausted much of their energy just to reach the 2008 high. However, in the present case the GDX is oversold on an intermediate basis and yet it is only a stone’s throw away from its former all-time high. What this means is that it could retest its former highs and still not be overbought, leaving plenty of energy left to rally further before becoming significantly overbought and depleted of much of its momentum. Perhaps the fourth time is the charm for precious metal stocks? (more)
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