Trading Idea - Entry Levels for ProShares Ultra Silver

Published on Thursday, 09 February 2012 08:42 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of ProShares Ultra Silver ETF (NYSE:AGQ) are trading very close to calculated support at $59.30 with current price action closing at just $61.71 places the stock price near levels where traders will start paying attention.

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.

Traders wanting to establish a position should place close attention to ProShares Ultra Silver's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $63.33 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

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.