Like gold, silver hasn’t had a great 2013. For that matter, it really hasn’t done much the last three years. What is now, in my opinion, a long-term down trend, it's good to look at the historical price action of a market to see if there are any levels of support that might come into play.
Today’s chart is a monthly view of the spot silver (SLV) market going back to 2002. The trend line on the chart below looks at the lows off 2003 and 2008. This line has provided pretty good support this year, acting as a base for the nearly 25% advance in August.
Bears Rule
We are now back this long-term trend line as well as the 100-month Moving Average. There’s no doubt that the bears are currently in control of silver as shown by the significantly lower lows from the 2011 high. Will this trend line off the 2003 low and 100-MA act as support? So far sellers haven’t eased off the gas or given any hints to the end of their conviction, but we’ll see what happens if we do in fact get a break or if the selling subsides.
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