For investors betting on higher commodity prices, by owning Commodity ETF DBC, its been a rough 20 months as DBC continues to make a series of lower highs in the chart below. 

Don’t over look that DBC has been a great leading indicator for the future price of Silver/SLV!

The chart below reflects that DBC is working on breaking support at (2)!

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The charts below reflect how DBC and SLV have traded almost in lock step, with DBC peaking in price almost a month ahead of SLV back in 2011.

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DBC/Commodities/Gold/Silver are very oversold, sentiment numbers in the metals complex reflect a very low number of bulls.  The decline of late in the metals complex and very few metals bulls present at this time… one should expect a short-term rally in the metals complex.

Do keep in mind a “cooling off/break of support” in DBC would suggest softer commodity prices should be in store down the road, which could pull down SLV with it, like it has for the past 20 months.   If you are open to trading the metals, don’t lose sight of what DBC does in over the next couple of weeks to month!

If you would like to know our medium-term target on Silver after a counter-trend bounce, send an email to [email protected] or click on the box below and we will send you a complimentary report that reflects where we would want to overweight towards Silver.

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