From the second week of July through the end of October, the price of silver fell in 15 of the 17 weeks.

The metal has bucked that trend in recent weeks and actually gained ground in each of the last two weeks. This is the first time since June the commodity has been able to put together a two-week winning streak.

While the price was falling, the sentiment toward silver was falling as well.

In mid-July before the sell-off started, large speculators were net long right at 50,000 contracts.

As of three weeks ago, the group was net long a total of 5,932 contracts.

During the last two weeks the group has added to the position and they are now long 11,754 contracts.

One news item that could have a huge impact on silver going forward was the surprise rate cut from the Chinese central bank.

The goal for the move was to lower borrowing costs, especially for corporations. If the move is effective, we could see an increase in the production of electronic items that use silver.

While the goal of the Chinese central bank is to stimulate their economy, the end result could be an increase in the demand for basic materials and thus a price increase for beaten-down commodities like silver, gold and oil.