Silver shorts play a dangerous game Commentary: The shorts could get caught here
From late November through late May, the spot price of silver has bled nearly 35%. This sharp and protracted six-month plunge in the value of the metal has many causes, but the primary factor contributing to the silver selloff is the rotation away from precious metals and into stocks of all varieties.
The heavy bout of selling in the space has created an extremely ugly technical picture for silver. In February, the spot price of silver, represented by the chart here of the iShares Silver Trust SLV +2.53% , plunged below both the short-term, 50-day moving average as well as the long-term, 200-day moving average. The drop below these two key technical resistance levels was followed by a near-capitulation selloff in April. Since that April meltdown, silver has fallen even further, and as of Friday, May 24, silver closed at $21.60.
Read more: www.marketwatch.com/story/silver-shorts-play-a-dangerous-game-2013-06-03