Silver forecast for the week of December 24, 2012, Technical Analysis

The silver markets sold off rather dramatically over the previous five sessions, and stopped right at the $30.00 handle. Because of this, it does look like the market is starting to enter a sell off phase, but the real question is whether or not there is going to be any significant follow-through. We believe that the time of year has a lot to do with this trade, as the profitable traders will typically sell their winning positions now in order to show profits to their customers. Going forward, we see absolutely no reason to think that silver will continue to climb in an environment that central banks continue to ease their monetary policy. With this being said, this week will more than likely produce nothing of value as the holidays volumes will be so thin.