Silver Forecast Technical Analysis – November 13, 2012
FX Empire – By Analyst Christopher Lewis
The silver markets fell during the session on Monday in order to retest the $32.25 level. This area was a resistance area previously, and has been broken above as of Friday. This area should start to offer support again, and because of this we are bullish of this market. As long as we don’t break below the $31 level, we would still be willing to buy dips and any type of supportive candle on the shorter-term charts.
We still believe in the bullishness of this market, as the superbikes around the world continue to print currency. This market has several bullish influences at one point in time. We have the long running up trend in this market, mainly because of the central banks and their printing, as well as a serious industrial demand for silver.
Unlike gold, silver actually gets used up and is somewhat unrecoverable. Typically, most gold goes into things like jewelry. However, silver actually gets used in electronic processes, as well as many other industrial demands. Because of this, 90% of the silver that’s mind during any given year is typically destroyed or used.
The $35.00 level above seems to be strong resistance, and then of course will be where we need to get through in order to continue the longer-term uptrend. We firmly believe that it will happen over time, but the reality is that there is a lot of political and economic uncertainty out there at this point in time. With this, we will see erratic in choppy trading even though we should see higher prices before it’s all said and done.
There will also be concerns about the European debt situation again, as well as the “fiscal cliff” in the United States in order to throw the markets around wildly. Silver is less liquid than the gold market, and as such will react with much more extreme volatility.
