Silver Forecast August 21, 2012, Technical Analysis

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The silver market shot straight up during the session on Monday, breaking above the $28 level that has been so resistant. Although not completely out of the woods yet, this is a very strong sign for buyers, and if you were more of an aggressive trader this is a good enough signal to get involved. After all, we do think that the silver market will continue higher eventually, but were waiting for the $30 level to get broken to the upside.

Because of this, we think that there are essentially two trades here: Either week for the $30 level to get broken to the upside on a daily close, or go ahead and buy now. The $28 level should start to act as support, and as such if you have a longer-term time horizon you may be comfortable going long at this point. It might take some time to get above $30, but once we do we think this market has quite a ways to go to the upside. In fact, we think 36 is more than likely a reasonable target over the next couple of months.

As for selling silver, we still won’t do it until we break below the $25 level. It is at that point in time that we feel that the moment and will have shifted, and as such we would like to be short of the market.

Silver Forecast August 21, 2012, Technical Analysis

Silver Forecast August 21, 2012, Technical Analysis

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About: FX Empire Analyst - Christopher Lewis

Christopher is a part of the FXEmpire.com analysis team. He writes Forex and Commodities technical analyses on daily and weekly basis. Christopher writes his analyses in a professional and yet simple to understand manner. His analyses are available in both text and videos.

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