This morning, the gold mining stocks are rallying sharply higher. The popular Market Vectors Gold Miners ETF (NYSE:GDX) are trading higher by $1.42 to $62.72 a share. The GDX has soared higher by more than $12.00 since October 4, 2011. Traders must realize that the GDX is now overbought and could need to pullback or consolidate very soon according to the daily chart. Traders that own the GDX at these levels should simply tighten up the stop loss at these levels. The GDX will have intra-day resistance around the $62.50, and $63.00 levels.
Other gold mining stocks that are trading higher this morning include Agnico Eagle Mines Ltd (NYSE:AEM), Newmont Mining Corp (NYSE:NEM), Randgold Resources Ltd (NASDAQ:GOLD), and Yamana Gold Inc (NYSE:AUY). All of these stocks are now slightly overbought on the daily charts and may need to pullback soon.