Market Vectors Gold Miners ETF (GDX) looks like it has a date with its 2008 low after losing two-thirds of its value in a prolonged sell-off.
The beleaguered ETF is down nearly 70% from its September 2011 high.
Gold miner stocks are falling harder than bullion prices amid speculation the Federal Reserve will step back from its monetary easing.
“Gold Miners (GDX) are down hard today and the question is, can it continue? A strong downtrend is extending, with the next major level of support coming from the late 2008 low,” Investors Intelligence technical analyst Tarquin Coe said in a newsletter Wednesday.
“Additionally, further downside is indicated by the large head-and-shoulders top which confirmed in February, projecting a move beneath the 2008 low,” he added.
Full disclosure: Tom Lydon’s clients own GLD.
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