A rally for GDX could take the ETF to the $19 to $20 area, Barron’s reports, citing the technical analyst. Splitting the difference and assuming a move to $19.50 means GDX would have to rally more than 18% from Wednesday’s close.
Big moves in short time frames are not unusual for GDX. After all, the ETF has a three-year standard deviation of almost 32.5%, or about three and a half times that of the S&P 500 over the same period.
Over the past month, GDX has finished a trading day to the upside on just five occasions.
Market Vectors Gold Miners ETF
ETF Trends editorial team contributed to this post.