Gold Miners ETF Set to Rebound
Source: SmarTrend, David Diaz (6/27/11)
"Short-term traders may play for some degree of mean revision."
Market Vectors-Gold Miners ETF (AMEX:GDX) traded in a range yesterday that spanned from a low of $52.43 to a high of $53.90. Yesterday, the shares fell 2.65%, which took the trading range below the 3-day low of $52.53 on volume of 9.2 million shares. Often times after large one-day declines, short-term traders may play for some degree of mean revision. Shares of Market Vectors-Gold Miners ETF are currently trading below their 50-day moving average (MA) of $56.83 and below their 200-day MA of $57.76. Look for the MA to provide resistance for a short-term rebound in the shares.
SmarTrend currently has shares of Market Vectors-Gold Miners ETF in a downtrend and issued the downtrend alert on June 7, 2011 at $54.96. The stock has fallen 1.7% since the downtrend alert was issued. SmarTrend expects the share price to rebound toward the $52.58 resistance level. Afterwards, it is expected to move downward with its peers in the SmarTrend Gold industry.