A fresh look at the Technical’s on silver suggests that we may see a small downtrend in Silver. Day traders and short term traders appear to be positioning themselves to short the metals gold and silver.

Silver never did follow Gold’s break out, this produces some caution for short gold and silver traders. On Friday Silver broke below the supporting uptrend line. This is a selling sign for short term and day traders. At the time of this writing, 2 hours into the Asian Market Silver is trading unchanged at $16.68.

A look at the Cot chart show that the commercials have been increasing their short positions over the last couple weeks. This is another reversal sign towards the downside. If in fact we see some downward selling pressure, this could provide Long-term investors a much needed break and opportunity to increase positions reduced pricing.

In General the overall trend still appears bearish for long term positions in both Gold and Silver. This easing of price is reflective of short term traders taking profits, as the gold and silver market has stalled since late December. If Gold and silver are to resume their bullish trend, a fall back is necessary to breathe new life into the market.

Although there is no way to know where the floor of this decline maybe, Long Term investors may look at adding to their Gold and Silver positions by layering in on the dips in price.

Shannon King