Silver prices are near the lowest level since 2010, and there’s been one of the quickest changes in opinion ever.

Back in May, commercial hedgers (considered the ‘smart money) held the biggest short position since 2010.

Prices slipped 10% since, so hedgers weren’t wrong per say, but the decline was shallower than on similar previous occasions.

Now, only six weeks later, commercial hedgers are much more bullish.

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As the silver chart shows, silver is at or near long-term support. The same is true for the iShares Silver ETF (NYSEArca: SLV).

Based on sentiment and long-term support, the odds of a silver rally have increased.

But sentiment extremes in itself are not a reason to buy. At least seasonality and technical analysis have to confirm a buy signal. Perhaps sentiment will even become more extreme (silver COT data released tomorrow).

A more detailed silver analysis, including short-term technicals and silver seasonality, is available via the Profit Radar Report.

Simon Maierhofer is the publisher of the Profit Radar Report. The Profit Radar Report presents complex market analysis (S&P 500, Dow Jones, gold, silver, euro and bonds) in an easy format. Technical analysis, sentiment indicators, seasonal patterns and common sense are all wrapped up into two or more easy-to-read weekly updates. All Profit Radar Report recommendations resulted in a 59.51% net gain in 2013 and 17.59% in 2014.

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