Silver Forecast August 28, 2012, Technical Analysis

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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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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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Shiv Pratap Singh

you Analyis is very good …i have just started looking at your charts on silver .

Very intersting analyis for 27th august 2012.

thnaks

 
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rick

I have been following some of the analysis from FX and like many people, in all facets of life, are always over cautious. It was only two weeks ago FX was saying silver could drop to 25 and if that level was broken down to 22. No one in FX was saying over thirty in two weeks. The truth is silver is very volatile and it,s growth is dependant on many things that most simply can,t project. It,s easy to say we support here and resistance there for the shorts, but that is not how silver should be looked at. Globally, we are in a mess and most currencies are backed by the US dollar. This has to change soon and when it does it will be dramatic. Currencies are now starting to look for something else to back itself and Gold seems to be the instrument.

I recommend people buy Silver and simply hold as the opportunity for a wealth transfer will happen quickly.

Tragically most will miss it.