ETF CORNER

SLV : At crossroads !

SLV has tried to break the long term resistance line (Red) at the end of May,but failed, which resulted in a fake move and trapped a lot of bulls above the $15 level (red circle). Now, the $14.5 level on SLV is where the long and short term resistance meet. This will be a major test for Silver ! Either way,depending on how SLV reacts as it appraoches $14.5 will produce a violent move (up or down) ?. I believe that it will be down...

Here are your weapons: ZSL (Double short SLV) (AGQ Double long SLV)

SLV : iShares Silver Trust

Back on March 23 rd (Click here!) I was very worried about the $16 resistance level on Silver SLV in the longer term,and was anticipating a downside reversal once it would reach that long term resitance line ! This level has proven to be a trap where most people went long SLV : "Weeee it's going to break to the upisde,let's buy !!" .. wrong wrong wrong ! My short term scenario for Silver SLV is the following : A bounce off the $13 level up to $14.5 followed by another leg lower towards $12-$11.5.

Since early 2009 there are two double ETF's on SLV you can trade :

ZSL (Double short Siver) and AGQ (Double long Silver).

SLV : iShares Silver Trust.