An exchange traded fund tracking gold miners is back near the top of the range it has been stuck in for over a year, and some technical analysts think the ETF is poised to break out to a new record high.
“When these sort of consolidations take place, I like to give the benefit of the doubt to the direction of the underlying trend,” writes J.C. Parets at All Star Charts.
“In this case, the trend has been higher for a long time so we’re anticipating a breakout to the upside here,” he added, pointing to the decade-long upside trend in Market Vectors Gold Miners ETF (NYSEArca: GDX).
The miners ETF is up about 11% over the past month and has gained 2.5% year to date, according to investment researcher Morningstar. It follows stocks, unlike some other ETFs that track gold bullion prices.
Earlier this month, the fund was turned away at an attempt to break through its yearlong range and 52-week high. [Gold Miners ETF Turned Back at 52-Week High]