In 2016, the Global X Silver Miners ETF (SIL) was one of the top performing ETFs of the year — even despite a late-year swoon.
2017 has brought a totally different set of circumstances, however, with the fund slowly but steadily continuing to drip lower. What’s next for the silver miners ETF?
Technical analyst Taki Tsaklanos over at Investing Haven has an interesting take on the fund’s recent breakdown:
How low can silver miners fall?
The SIL ET shows that there are two points to which they are gravitating. The first point seems a likely target: 25 points. However, if this becomes a sharp correction, we could see a fall to 16 points. If that were to take place it would offer an amazing entry point as it would mark a higher low (potentially) against December 2015 in which case it could be the ultimate retest of the lows before silver miners take off into a new bull market.
The Global X Silver Miners ETF (SIL) was unchanged in premarket trading Monday. Year-to-date, SIL has declined -3.24%, versus a 16.42% rise in the benchmark S&P 500 index during the same period.