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Silver Forecast December 28, 2012, Technical Analysis

By:
Christopher Lewis
Updated: Aug 21, 2015, 02:00 UTC

The silver markets gained 6/10 of a percent during the Thursday session as we continue to bounce off of the $30.00 level. This area was a gap back in

Silver Forecast December 28, 2012, Technical Analysis

The silver markets gained 6/10 of a percent during the Thursday session as we continue to bounce off of the $30.00 level. This area was a gap back in August, and as a result it is a natural spot where we could see support come into the market. Knowing this, it makes sense of the market is simply sitting here.

Looking at the action over the last several sessions, you can see that this area is in fact holding up rather nicely, and the fact that we fell so precipitously to this area and simply cannot go any lower does suggest to us that the selling might be over.

Remember, there is seasonality to silver and other precious metals in general. Typically what will happen is traders will sell off their positions in the month of December in order to “realize gains.” Knowing this, December typically ends up being one of the weaker months for precious metals. However, traders will typically reenter the markets in January in order to continue the long-term trend higher.

With this in mind, we are still very bullish of silver and think that perhaps we are in the middle of building some type of floor in the market. We already own physical silver, as most of you know by now, and also own the ETF known as the SLV, which follows the silver futures markets as well as silver miners. Because of this, we are always long of this market in one form or another, and do not sell it because of this. We believe in the long-term uptrend of silver, and will continue to buy the futures markets when there are supportive signs as it allows us to maximize our gains over time. This particular action here lately is definitely a very bullish sign in the sense that we crashed into the $30.00 level, it simply just cannot fall below it. Because of this, we are willing to start buying at this point in time and especially if we managed to break above the $30.50 level. As far as selling is concerned, we are not interested.

 

Silver Forecast December 28, 2012, Technical Analysis
Silver Forecast December 28, 2012, Technical Analysis

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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