With a year-to-date gain of 32.6%, the Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ) easily ranks as one of the 2014’s best non-leveraged ETFs.
However, GDXJ is off 6.5% since Feb. 14, an arguably necessary respite for surging in January and through the first half of February. The good news is that although GDXJ has pulled back recently, the ETF’s technical picture remains solid as the fund resides comfortably above its 50- and 200-day moving averages. [Mining ETFs to Remember]
GDXJ “has been pulling back on lighter volume the past two weeks” and around $40 “there is support from the 40-week moving average and uptrend line. The 10-week moving average is catching up quickly and could also provide support, depending on how the action unfolds,” according to Deron Wagner of Morpheus Trading Group.
Wagner notes that GDXJ briefly undercutting its 40-week moving average could “produce a shakeout candle, but that is not a requirement to make the setup actionable.”
GDXJ moved above its 200-day moving average earlier this month for the first time since late 2012. The ETF’s 20-day moving average recently peaked above the 200-day line, a bullish sign.