We have updated our privacy policy and terms & conditions. Find out more here.

Silver Prices Forecast: $28.50 To Be Tested Into 2013

By CommoditiesDec 23, 2012 05:11AM GMT 1 Comment
Silver Prices Forecast: $28.50 To Be Tested Into 2013
By   |  Dec 23, 2012 05:11AM GMT
Share with a Friend
Thanks for sharing
Emails have been sent to:
To send more emails click here
Silver followed a similar pattern to gold on Friday, as safe haven markets rallied with risk appetite evaporating ahead of the weekend. This occurred because markets absorbed the news that the US authorities had failed to reach any consensus agreement on the impending fiscal cliff that is now dead ahead.

The move higher for the industrial metal was relatively muted, with the March silver futures contract closing the trading session at $30.25 per ounce, having opened gapped up at $29.95 per ounce. Indeed the seminal day for silver was Thursday, which saw the price fall sharply, and ended with a wide spread down bar which breached the psychological $30 per ounce level, but more importantly also closed below the isolated pivot low of the 5th November at $30.75 per ounce.

March Silver Futures – Daily Chart
March Silver Futures – Daily Chart

Moving to the indicators on both the daily and the three day charts, the two most significant are currently the trend and the volume, and looking at the daily volumes first, two aspects stand out. First, the daily volumes throughout the week were bearish and rising, and second, the volume on Friday was significantly higher, suggesting that bearish sentiment is also increasing.

This view is also confirmed on the three day chart, with strong bearish volume here too. With the three day trend now in transition, a change to bearish will add further downwards pressure on the metal, and mirror the trend on the daily chart, which has been bearish since early December.

From a technical perspective, the key level is now the next level of potential support in the $28.50 per ounce level which is now likely to be tested as we move into 2013. Any failure at this level will then open the way for a deeper and sustained development of the bearish trend.

However, given the depth and extent of this price congestion, we can expect to see this area hold, and provide a platform and consequent springboard for a recovery and return to bullish momentum in the medium term.
Silver Prices Forecast: $28.50 To Be Tested Into 2013

Related Articles

Silver Prices Forecast: $28.50 To Be Tested Into 2013

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Add Chart to Comment
Are you sure you want to delete this chart?
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
pattie jabbaz
pattie jabbaz Dec 24, 2012 02:50AM GMT
I think the same way us you do. Support at 28,60 is mine at this time. But I personally think that recent move to the downsode was to do with the experation on Friday. It really doesn't need to reach this level, if it does would give a buying opportunitty. Intelligent cash has to move OUT of US BONDS, OUT OF US STOCKS, AND LOOK "OUTSIDE" US, LIKE: BRAZIL, ARGENTINA, RUSIA AND CHINA FOR "REAL VALUE", OUT OF US DOLLAR AND INTO GOLD AND SILVER AS A PART OF A INTELLIGENT PORTFOLIO..My best, have a great holidays and keep writing your reports, are very good!.Pattie.
Are you sure you want to delete this chart?

Successfully Reported

Thank you. This comment has been flagged for a moderator.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.