Silver prices touched two-year highs earlier this month. Traders looking to profit from silvers downside can consider the ProShares UltraShort Silver ETF (NYSEArca: ZSL), which is a double-leveraged product.
Year-to-date, silver has mirrored the surge in gold in response to ongoing market volatility. Silver has exhibited a correlation of over 80% to gold and typically moves in the same direction as the yellow metal but in larger movements.
“The support right around 19.20 will be pivotal; if the metal breaks below there, then a move into the mid-18s becomes the risk. Which is a spot that holds significant as long-term support. Perhaps by then some of the speculative longs will have puked out their positons and a possible reload for another shot higher could take shape. It is still too soon to discuss that, so we will stick with the short-term structure suggesting some work needs to be done by the bulls to turn the technical structure positive,” notes DailyFX.
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