Gold Stocks Overheated? 20% Correction Coming Says Technician

New York (May 10)  With a slow start to the year, many of the gold miners have now seen their shares rise massively in 2016. So does a 83% rally in GDX since the end of 2015  show that perhaps things could be getting overheated? According to Jordan Roy-Byrne, the editor of The Daily Gold, after hitting a historically significant low in January, another short-term 20% correction for gold miners is overdue. ‘If it doesn’t happen immediately, it will probably happen in the summer,’ he told Kitco News Tuesday. ‘But, other than that, I think people need to stay bullish on the miners.’ The market technician said that investors need to remain patient. ‘If you’re looking to get in right now, wait for the sector to correct…there will be an opportunity or two in the coming months.’

Source: TheStreet