It’s been a tough year for investors in the Gold Miners Index (GDX (NYSE:)), with the ETF down more than 10% year-to-date and massively underperforming the S&P-500 (SPY). Despite the depressing performance of the miners, the GDX setup remains extremely constructive. Investors should consider starting positions in high-quality stocks. This suggests that dips will likely be bought at $30.00 or higher in the near future. Agnico Eagle Mining (NYSE:) and Agnico Gold Mines (NYSE 🙂 are three names worth mentioning as being very reasonable valued, with strong management teams. B2Gold (NYSE:), and Skeena Resources (SKE).It’s been a tough year for investors in the Gold Miners Index (GDX), with the ETF down more than 10% year-to-date and massively underperforming the S&P-500 (SPY). Even though the performance is disappointing, it has led to one of the most negative sentiment readings for gold miners in recent years. It has also left their valuations at the highest levels they have been in many years. Despite the GDX remaining in an intermediate downtrend, and a deep correction we haven’t seen any real changes to the technical picture over the longer-term. Because the GDX has been back-testing a multiyear breakout area and finding support so far in that key area, this is why it is not causing any real damage to the long-term technical picture. Take a look at the following:

(Source: TC2000.com)

The chart shows that while miners have had a disappointing performance, the setup for GDX is still very positive. Investors should consider starting positions in high-quality companies. This suggests that dips will likely be bought at $30.00 or higher in the near future. Skeena Resources, Skeena Eagle Mines and B2Gold (BTG) are three names that have solid management teams. Although each company has a different business model, all three possess world-class mines and industry-leading margins. They also have management teams who continue to overpromise and deliver.

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