While some traders may be tempted to play an oversold bounce in silver ETFs, recent volatility makes it a risky bet. Silver was trading below $35 an ounce on Thursday. If the selling picks up steam, the next potential support is around $30 an ounce.
“Bottom line: the sell-off in silver looks near complete but new longs at current levels need to allow for a possible spike down to $30,” said Coe at Investors Intelligence. “A sustained break of that level could be used as a stop.”
iShares Silver Trust
Full disclosure: Tom Lydon’s clients own SLV.