Gold miner stocks and ETFs are showing faint signs of life after a protracted sell-off, leading some technical analysts to wonder if the downtrodden sector is due for at least a short-term bounce.
Over the past week, Market Vectors Gold Miners ETF (NYSEArca: GDX) has recovered somewhat “despite a horrific chart and heavy bearish sentiment towards the sector from the majority, myself included,” says Investors Intelligence analyst Tarquin Coe.
“That resilience suggests that an oversold bounce is necessary, to alleviate the oversold condition and squeeze the bears,” he wrote in a newsletter Wednesday.
“Therefore we are now short-term bullish the sector but still feel the medium-term trend remains down,” Coe added. [Gold Miner ETFs Can Fall Further]
GDX is down nearly 50% year to date. [Small-Cap Gold Miner ETF Bounces After $800 Million Outflow]
Market Vectors Gold Miners ETF
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.