ProShares UltraShort Silver (the Fund) seeks daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of silver bullion as measured by the United States dollar fixing price for delivery in London.
Gold and silver prices have spiked quite a bit lately. There are signals that people may want to pay attention to going in the other direction. ZSL is an double short silver ETF. A very risky asset especially as silver makes new highs. However, with a tight stop we could make a nice trade.
ZSL like DZZ its gold counter part has made a nice 30 minute MACD crossing to the upside off a low of 5.50. We will use 5.49 as our sell stop. Look for ZSL to pull back to Fibonacci retracement levels 5.66 and 5.60 before moving higher, offering good entry points if you are not already in.
If silver makes a pullback here we could see ZSL make a move to 6.10 and 6.47. A tight stop and discipline is necessary. This could be a quick stop out, or a nice contrary trade higher for quick profits. Continue to monitor the complete trade set up in the link below.
The short term trade analysis for ZSL is being tracked in its trading alerts page.