Silver Attempting to Breakout

Source

Today’s chart of the day focuses on yet another beaten down and very depressed asset within the Precious Metals sector. Silver’s bear market started in May of 2011 and at its worst point was down more then 70% over a four year span. Silver is currently trading around the same levels as in 2009/10 period.

Chart Of The Day: Could silver break out from a downtrend and rally?

Silver COT

 Source: Short Side of Long

 

The downtrend line has been in place since September 2011 (same time as when Gold peaked out). Silver’s price is currently attempting to break out from this resistance line, as well as the nearby 200 day moving average (not shown in the chart). Sentiment isn’t as bearish as it was during recent intermediate lows, but nonetheless there is a possibility price could rally for awhile. Is this the final bottom or just another short squeeze before another leg down?