NEW BULLISH Plays
Gold Miners ETF - GDX - close: 26.79 change: +0.29
Stop Loss: 25.90
Current Gain/Loss: unopened
Entry on March -- at $--.--
Listed on March 06, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 38.8 million
New Positions: Yes, see below
Why We Like It:
The GDX is an exchange traded fund (ETF) that follows the gold miners. The top ten holdings are ABX (13.8%), GG (12.75%), NEM (6.7%), NCMGF, SLW, AU, FNV, AUY, GOLD, and KGC.
Both gold futures and gold mining stocks have risen sharply this year. Normally the miners tend to outperform gold when the commodity is rising.
Currently the GDX has been consolidating sideways the last couple of weeks but now the ETF looks poised for a breakout past resistance near $27.00. The point & figure chart is bearish but a move above $27.00 would generate a new buy signal.
I am suggesting a trigger to buy the GDX at $27.15. If triggered our target is $30.00. I do see resistance in the $31.00 area.
Trigger @ 27.15
Suggested Position: buy the GDX @ $27.15