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Gold Miners Near Attractive Levels

The Market Vectors Gold Miners ETF (NYSE:GDX) have topped out on June 28th around the $54.00 level. Since that time this basket of gold mining stocks has declined sharply and is now trading around the $47.67 area. On July 19th the GDX found support and bounced at $46.99. This area still looks to be an important support area for this highly popular ETF.

Newmont Mining Corp (NYSE:NEM) is a leading mining stock that has sold off sharply over the past few weeks. This stock is now trading at support and could be do for a bounce soon. Newmont Mining Corp should have support at the $55.75 level. Should this level fail to hold up as support the $54.00 area would be the next important support level.

Randgold Resources LTD (NYSE:GOLD) has also sold off sharply since late June when it traded as high as $99.67. This stock is now trading down at $89.15. Should this leading gold miner trade down to the $88.00 - $87.50 area it would look attractive as this is an important support area. The stock will also have a lot of support around the $85.00 level which is another possible bounce area.

When everyone loves a stock or sector that is when the professional trader wants to give them what they want. When everyone hates or strongly dislikes a sector or stock that is when it becomes interesting for a potential buy. The gold mining stocks are now nearing those attractive levels.

Nicholas Santiago
Chief Market Strategist