Silver Forecast for the week of July 9, 2012, Technical Analysis

By FX Empire Analyst - Christopher Lewis
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Silver markets had a bearish week as a poor jobs report out of the United States on Friday underlines exactly how poor the industrial demand for the commodity will be. The $26 level looks to be the beginning of fairly significant support all the way down to $25. However, we can see that the pressure is building as the market looks to be forming a bit of a descending triangle at the moment. With this in mind, we do not want to buy this market and would prefer to sell given the right signal.

On a daily close below the $25 level, we are more than willing to become aggressively short of the silver market. We feel that this market will continue to underperform gold for the foreseeable future, especially as the industrial demand part of the equation has basically been nullified. As for buying, we will not do so until we get a daily close above the $30 level. Until then, expect a short-term traders market.

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