Silver: Bulls clinging to 50DMA, bears smell opportunitySilver / U.S. Dollar (per 0.1)FOREXCOM:XAGUSD01FOREXcomSilver finds itself resting on the key 50DMA, a level traders have used as a launchpad for bullish moves on the last two occasions of testing. However, with unconvincing price action and momentum indicators turning neutral, it may be a case of third time lucky for bears on this occasion. Silver has already broken beneath the February 2012 high of $37.46, which has acted as something akin to a dividing line for price action since first being crossed in July—a small win for bears seeking a deeper pullback. But given how often bears have attempted to break beneath the 50DMA only to see the price reverse back in their face, to bolster the case for shorts it would be preferable to see a close beneath the level before establishing bearish positions. Potential targets include $36.27 and $35.50. A stop above either the 50DMA or $37.46 would offer protection against reversal. If the 50DMA holds firm again, the setup could be flipped with longs established above the level with a stop beneath for protection. $38.73 screens as an initial target having acted as both support and resistance in July and August. Good luck! DS