Technical Analyst Thinks Gold Stock ETF Has Some Fall Left In It

In a Stockhouse column, techncial analyst Jeff Clark picks through a chart of the Market Vectors Gold Miners ETF and concludes that it still has some fall in it. He recommends waiting until it gets below $40 before buying it, if the reader is so inclined. This chart, from his article, sketches out his reasoning:



He may be right, but the fundamentals coming in have been good. If his scenario plays out, it'll be a sign that gold stocks are in the bargain bin and may be there for some time. Value investors will have one interpretation, while momentum players will have another.

However, the most recent performance of the ETF suggests that his pullback scenario isn't in the offing. As of the time of this post, the ETF is above 45, making for a short-term series of higher highs and higher lows. Both value investors and momentum players may want to readjust their conclusions.