ProShares Ultra Silver Close to Resistance

Published on Wednesday, 08 February 2012 10:14 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of ProShares Ultra Silver ETF (NYSE:AGQ) are trading very close to calculated resistance at $63.33 with the current price action closing at just $62.60 placing the stock near levels that make it difficult to buy.

ProShares Ultra Silver ETF (NYSE:AGQ) seeks to provide daily investment results that correspond to twice the daily performance as measured by the United States dollar fixing price of silver for delivery in London. The Fund will not directly or physically hold the underlying silver, but instead will seek exposure to silver through the use of financial instruments, whose value is based on the underlying price of silver to pursue their investment objective. The benchmark price of silver will be the United States dollar price of silver bullion as measured by the London fixing price per troy ounce of unallocated silver bullion for delivery in London.

ProShares Ultra Silver's current stock range is defined by current calculated support defined at $59.30 and by the resistance level at $63.33, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for ProShares Ultra Silver, as the stock is well above support, however, as the stock pulls back towards $59.30 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $63.33 then traders will get an opportunity to enter ProShares Ultra Silver stock by establishing a position as the stock moves to a higher range.