Silver Forecast December 6, 2012, Technical Analysis

The silver markets fell precipitously during the session on Wednesday as we crashed down into the $33.00 area again. This market looks like it’s trying to break down into the previous resistance area that should now be support. We are still very bullish of the silver markets, and think that it is only a matter of time before we start to get more support. However, as things stand right now there could be a bit of a run towards the US dollar as more concerns about the fiscal talks in the United States surface. It seems that the two sides are nowhere near agreeing on anything, and as a result we could see a safe haven run here fairly soon. However, we feel that any selloff is a buying opportunity once the momentum stabilizes.