Silver Forecast December 5, 2012, Technical Analysis

The silver markets fell rather precipitously during the session on Tuesday as the markets sold off everything relating to risk. A lot of profits have been both in silver this year and hedge funds are starting to liquidate their positions before the end of the year based upon having to report to their clients, and the possibility of a larger capital gains tax for 2013.

Because of this we see quite a bit of distortion in the marketplace right now, and especially in the metals. However, we are just below the $33.00 level, and certainly wouldn’t call it “broken.” Because of this, we are looking for support below, and if we see it we would not hesitate to buy another contract in this market. As for selling, we will not do it.