Silver Forecast August 28, 2012, Technical Analysis

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By FX Empire Analyst - Christopher Lewis
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The silver market had an interesting session on Monday, as it bounced from the hammer that had formed last Friday in order to suggest that the buyers were taking over again. However, by the end of the session we saw the market pullback in order to barely be changed at all. The resulting candle is a shooting star, and does suggest that we are about to see a pullback. If you look at this chart, you can see that it is certainly overbought, so this doesn't surprise is.

Looking at the charts, we see support at the $30 level, the $29 level, and the $28 level. With this being said, it looks like a fall from this level will more than likely just attract more buyers at a lower price. This is exactly how we want to play this market, as we do see it breaking out and going to much higher prices. As for selling, we simply don't have any interest in it at this point.

Silver Forecast August 28, 2012, Technical Analysis

Silver Forecast August 28, 2012, Technical Analysis

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