Charts don’t come much more interesting than ETPMAG – the exchange traded commodity (ETC) on the ASX offered by ETF Securities.

It’s a fantastic ascending triangle, with the ascent framed somewhat by the simple 200-day moving average also which can be seen on the chart as the line in red.

Meanwhile short term there has been some horizontal or mildly down-trending resistance around the 3360c mark.

That is with the exception of two wild days trade above that level on the 1st and 2nd of February this year, the now infamous days of the attempted squeeze higher by the wallstreetbets crew on reddit.

The dynamic of the silver market at its core could not be more different than the wildly particular set-up that was GameStop going into the squeeze.

The silver spike was reversed back out within a day, leaving an entirely attractive and likely gap on the chart back up to 3470c if the ETC can again move above the 3360c mark.

The ETPMAG silver lining

ETPMAG is delightfully liquid, and a cracking exposure for those whom prefer a pure play into the commodity as opposed to company specific risk.

Those very same companies have been popping up all over the place on the ASX just of late, and are currently about as volatile as one might expect.

We own ETPMAG, and given a favourable view on silver’s industrial applications as well as the current price action, positions are sized to tolerate risk down to around 3000c from current levels.

You can read more about the details of ETPMAG here.

Steve Collette of Collette Capital Pty Ltd (ABN 56645766507) is a Corporate Authorised Representative (No. 1284431) of Sanlam Private Wealth (AFS License No. 337927), which only provides general advice.

Collette Capital only makes services available to professional and sophisticated investors as defined by the Corporations Act, Section (s)708(8)C and 761G(7)C.

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