Silver Forecast August 29, 2012, Technical Analysis

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The silver markets have recently broken out and above the $30 level, and the Tuesday trading action saw more supportive moves. However, it should be noted that the range is somewhat muted, and this is probably because of the Federal Reserve Chairman’s speech that comes out on Friday. At this Jackson Hole, Wyoming speech he is expected to perhaps clear of his intentions on the issue of quantitative easing. If there is no hint of quantitative easing, this should continue to strengthen the US dollar. However, if he shows signs of easing, precious metals and commodities on the whole should in turn rise.

Because of this, we do favor the upside as we think the bullish move is still in its infancy. A break down below the $28 level would be very bearish for this market, but it isn’t in till we get down to that level that we are interested in selling. However, if we manage to break to a newer high at the $31 handle, we are more than willing to start buying again.

Silver Forecast August 29, 2012, Technical Analysis

Silver Forecast August 29, 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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