Silver forecast for the week of December 10, 2012, Technical Analysis

The silver markets fell slightly during the previous five sessions, but remain supported at the $33.00 level. As you can see, over the last several months we have been bouncing around between the $26.00 level, and the $36.00 level. However, the last time we try to breakout the correction or pullback was much shallower than the previous time. As a result, we only fell to the $31.00 handle, and it looks like we’re trying to build momentum to breakout to the upside.

There are plenty of support banks out there printing money right now, so silver gaining wouldn’t exactly be a surprise. Because of this, we hold physical silver, as well as the ETF form. We buy these futures contracts when a breakout, and we think a move above $35.00 would be such an occasion. We will not sell silver.