originally published Thursday, March 26, 2020

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The action in USLV this morning suggests that it may be on the point of reversing to the downside as the rally off recent lows has slowed as it has arrived at the resistance at the top of a large gap, and at this point a bearish looking “doji star” candle appears to be forming. It might not look like much on the chart, but we have a good profit in this, as it is so leveraged and we have a gain of 55% in 4 days from we bought it, which we don’t want to give back to Mr Market. Keep in mind that the overall tenor of this chart is still negative, with the price still below bearishly aligned moving averages.

Selling this here does not mean that we no longer believe that silver is undervalued and due a massive rally before much longer. We do, but this could return to recent lows before that happens, so we will be looking to buy it back on a dip.

It is now considered to be time to TAKE PROFITS IN AGQ AND SLV, for the same reasons, and in any SLV Calls you may still have.

USLV webpage

VelocityShares 3X Long Silver ETN, USLV, trading at $43.15 at 10.30 am EDT on 26th March 20.

Posted at 10.35 am EDT on 26th March 20.

The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.