Silver Forecast December 17, 2012, Technical Analysis

The silver markets had a slightly negative session on Friday after Thursday’s bearish action. This makes sense though as continuation after a large red candle is typically the case. However, we still see the $32.00 level offering quite a bit of support, and as a result we are willing to start buying silver again on the first signs of a supportive candle.

We are long of the ETF known as the “SLV”, so we are never short of this market regardless. We also own physical silver, and believe that it’s an excellent long-term investment. Going forward, we think that the $35 level will be taken out by the bullish traders, but maybe not until we get into January. With the low volume of the next two weeks, we think the trading action will continue to be very choppy.