Contrarian investors trying to time a bottom in Market Vectors Gold Miners ETF (NYSEArca: GDX) have been repeatedly burned this year after a more than 40% loss in the fund.

Yet GDX was up 4% on Monday after climbing above its 50-day simple moving average for the first time since November 2012.

Naturally, investors are wondering if this rally is the real thing and if embattled gold miner stocks have finally put the worst behind them. [Gold Rebound Fuels Upturn in Mining Stock ETFs]

On the weekly chart, GDX staged a notable bullish reversal last week right at the right shoulder of a bullish inverse head-and-shoulders pattern, Kimble Charting Solutions said in a newsletter Monday.

Direxion Daily Gold Miners Bull 3x Shares (NYSEArca: NUGT) climbed about 12% on Monday morning. The ETF was also the #2 trending security on StockTwits.

GDX is up 14% for the trailing month. The gold miner ETF rose for the third straight session on Monday.

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.