GDX and GDXJ ETFs
As the GLD prices declined, the VanEck Vectors Gold Miners ETF (GDX) and the VanEck Vectors Junior Gold Miners Trust (GDXJ) also declined on February 3, 2015. Last week the GDX and GDXJ ETFs rose after reports of US economic growth data and the weaker dollar on January 30. Gold and the GLD ETFs’ price movements are important for the iShares Gold Trust (IAU), as well as gold mining companies like Newmont Mining (NEM) and Barrick Gold (ABX).
GDX was trading at $21.87 on February 3, a decrease of 2.58% compared to February 2. The GDXJ ETF was trading at $26.83 on February 3, a decline of 2.61% compared to February 2. These ETFs saw a huge investors fund inflow.
Support and resistance: The GDX and GDXJ ETFs
Bullish news could push GDX to between $24 and $26. However, support for GDX is at $20 and then to $18. The moving average convergence divergence (or MACD) is above the zero line and has been trending higher since January 27. This suggests a positive price movement.
The resistance for GDXJ ETF is at $30 and support is at $22. Like GDX, the relative strength index (or RSI) has been trending lower since January 27, so prices may fall further. However, the RSI is pretty close to overbought territory, which means the upside could be limited. The moving average convergence divergence (or MACD), however, is above the zero line and has been trending lower since January 27, which suggests a negative price movement.