Silver Forecast December 12, 2012, Technical Analysis

The silver markets initially rallied during the session on Tuesday, but were be back in order to form a shooting star and closed just above the $33.00 level again. Normally, this would be an extremely bearish sign but the fact is that the last several candles have been neutral, so this isn’t necessarily something that we would be concerned about at this point.

The truth is that the FMOC meeting that ends today will more than likely determine the future direction of silver. This is because the world will have to wait and see what the Federal Reserve decides to do as far as expanding asset purchases, or other types of easing. The more they do, the higher silver will go.

The matter what, we are still bullish of silver over the long run, and do think that the longer-term charts will still suggest buying this market is the only way to go. If we managed to break above the highs from Tuesday, we should see this market hit the $34.50 level in relatively short order.