Where is Support for Gold and Silver Stocks?

Posted on November 30, 2011


It has been a tough year for the mining stocks. The large stocks have moved back and forth in a range from support to resistance while the mid tiers and juniors have really struggled especially in recent months. With Europe seemingly on the brink and most markets turning down, it is an opportune time to examine the technical support of the various gold and silver equity indices. The longer the large cap equities maintain support, the more internal strength they build in preparation for a breakout in early 2012. In turn, such action would greatly help the juniors and non producers who have had a difficult year.

We start with our flagship market GDX, the ETF for large unhedged gold producers. Since June, GDX has made slightly higher lows. Not bad considering the S&P 500, emerging market and commodity stocks all made news in that period. GDX continues to hold its 600-day moving average which was key resistance in early 2009 but support in early 2010. The market has support from $52 to $54.

Read the rest here:

http://thedailygold.com/featured/where-is-support-for-gold-and-silver-stocks/?p=12204/

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