Silver Forecast December 19, 2012, Technical Analysis

The silver markets had an absolutely horrific day on Tuesday as the market completely rolled over and fell straight down. This is obviously a bearish turn of events, but we are above a fairly significant trend line, as well as the 200 day exponential moving average. Because of this, it is still difficult to short the silver market, and as such we are not. Instead, we are simply sitting on the sidelines waiting for or that supportive candle in order to start buying again.

It is possible that we will see a lot of a rally behavior out of the silver markets over the next couple of weeks as the liquidity dries up. Because of this, we do not put too much stock into this trade, and acknowledge the fact that the longer-term trend is still looking up.