Silver Forecast July 11, 2012, Technical Analysis

The silver markets fell during the Tuesday session as further concerns of European slowdowns dominate market headlines. However, with the relative quiet in the marketplace due to a lack of economic announcements, the silver markets stayed within a relatively tight range.

The chart looks like it’s trying to grind lower, and without a doubt we see the 26th dollar level as the beginning of support in this marketplace. We see a continuation of lower highs, and a building up pressure to the downside. There is a real chance that this market comes undone in the relatively near future, and this would be signified by the breaking below of the $25 level. Once we get a daily close under that market, we are more than willing to not only short this market, but do it aggressively. It should be noted that the next major looking support level underneath this level is the $15 level. As for buying, we need to see a daily close above the $30 level which looks fairly unlikely at this point.

Silver Forecast July 11, 2012, Technical Analysis
Silver Forecast July 11, 2012, Technical Analysis

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