Friday, May 20, 2011

GDX May Be Near A Bottom

The GDX may have found support around 54 against a rising 50wema.  The weekly MACD is approaching the zero line and setting up a possible buy signal, which may take another 2 to 3 weeks to develop. This is occurring with the backdrop of a huge selloff in gold and silver, which many believe has confirmed a top in the metals.  Perhaps silver has topped and gold needs another stab at a new high.  In any case, as long as support holds in the GDX, the prospect for gold mining stocks is looking brighter.

RGLD has broken out to new highs and pulled back to test its old high.  It may be a trading candidate.

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