Silver Forecast December 13, 2012, Technical Analysis

The silver markets initially fell during the session on Wednesday, but again the $33.00 level held as support. The resulting candle for the session was a hammer, and as a result we still think this market is very bullish overall.

As you know, we hold physical silver and the ETF forms, so we are always long of this market to begin with. However, we at these futures contracts at times and we see strength. This is such one of those times, and as a result we have already done so. We think that this market runs up to the $34.50 level at the very least, and quite frankly should breakout above the $35.00 level after the Federal Reserve announced on Wednesday that it was expanding its asset purchase programs.