Today's gold-mining stocks took a sharp move higher at the start of the day. Today, the popular and highly traded Market Vectors Gold Miners ETF (GDX) is up by $1.29 to $29.78 a share. The gold mining stocks have been very weak over the past year.
Lots Of Short Action
Recently, there have been many traders and investors piling in on the short side of the gold-mining stocks, so any sharp reversal to the upside could cause a short squeeze in this sector. The GDX will have some intra-day resistance around the $30 level. Should a short squeeze occur in the gold miners, the GDX could trade up to the $33 level on the daily chart.
A few other gold-mining stocks that are rallying higher, today, include Randgold Resources Limited (GOLD), Goldcorp Inc. (GG), Newmont Mining Corporation (NEM) and Barrick Gold Corporation (ABX). All of these stocks will usually trade in tandem with each other. They should all have further upside in the near term on the daily charts.