- The metal broke below down trendline support last week amid broad-based weakness in metals, but the downside break has since been nullified by a relatively strong bounce.
- Silver is now trading at record low levels based on its historical correlation with gold and the commodity complex.
- While rising U.S. real bond yields and lower gold prices are a risk, these factors have not prevented significant silver rallies in the past from similar valuation extremes.
- The SLV has a proven track record of tracking the silver price and stands to benefit greatly if the metal recovers as the technicals and fundamentals suggest.
For further details see:
SLV: Bearish Headfake Is A Strong Buying Opportunity