Below looks at silver on a monthly basis -- back to the 1970s. Since the 2011 high,silver has created a series of lower highs and lower lows.
An important cluster is in play for the metal, and it has the potential to back off quite a good bit.
This year's rally, due to lower highs and lower lows, has to be considered a counter-trend rally until falling resistance is taken out. Silver hit a cluster of resistance (4 lines) and its Fibonacci retracement level at (1). Since hitting this cluster, Silver has been soft of late.
Now it's testing a key support line at (2).
If silver breaks this support, it could attract sellers, dropping the price. What happens at this support test looks to be very important for the price of silver and the metal's space going forward.