Silver has been on a wild ride in recent months, with the VXSLV ETF experiencing an explosive upside that has left many investors scratching their heads. While some may view this as a sign of strength and potential bottoming out, others may see it as a correction in the making. In this blog post, we’ll dive deeper into the factors driving VXSLV’s recent performance and what it could mean for silver investors moving forward.

Firstly, let’s take a look at the chart of VXSLV’s price action over the past year. As you can see from the image above, there have been several instances of volatility eruptions, with each correction leading to silver taking a breather and correcting some of its gains. However, the most recent upside has been particularly explosive, leading some to question whether this is a sign of strength or a correction in the making.

One factor that could be driving VXSLV’s recent performance is the ongoing global economic uncertainty. As investors seek safe havens for their capital, precious metals like silver have historically performed well during times of instability. Additionally, the ongoing COVID-19 pandemic has had a significant impact on global supply chains and trade, which could also be contributing to the recent upside in silver prices.

Another factor to consider is the recent action in the gold market. Gold and silver are often seen as correlated assets, meaning that their prices tend to move in tandem. As gold has experienced a significant correction in recent months, it’s possible that this could be spilling over into the silver market and driving its recent upside.

However, there are also some potential signs of weakness in the silver market that could indicate a correction is imminent. For example, the RSI (Relative Strength Index) indicator has reached overbought levels, indicating that silver may be due for a pullback. Additionally, the MACD (Moving Average Convergence Divergence) indicator has shown a bearish crossover, which could also be a sign of a potential correction.

While VXSLV’s explosive upside may be seen as a sign of strength by some investors, there are also several factors that could indicate a correction is imminent. As always, it’s important to do your own research and consult with a financial advisor before making any investment decisions. Stay tuned for further updates on the silver market and potential implications for investors moving forward.