Silver Spot Price 3 Dec 2009
As outlined in yesterday’s spot price silver market report, the correlation between gold and silver seems to have been re-established in the last few days, and as a result yesterday’s minor pullback in gold prices, was replicated in the silver chart with a modest fall, with silver closing the trading session at $18.71 per ounce and creating a down candle with no shadows to top or bottom. Whilst the fall was unwelcome for silver bulls, there are two technical indications that this is only a temporary move down, and as a result we should see silver prices continue higher in due course. The first signal is that the low of the day found some strong support from the 9 day moving average, always a positive signal, and one that suggests that the bullish momentum remains firmly in place. Secondly, and perhaps more importantly this analysis is confirmed by the potential support platform which is now sitting below, and which also provided a barrier to prevent a further move lower yesterday. With these two signals combining, the pullback yesterday may be considered a temporary move only, and as a result we should see silver prices bounce back and higher in due course and on towards our initial target of $20 per ounce, and as such any minor fall should be seen as a buying opportunity for the longer term upwards trend, as for gold.
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Support & Resistance for Spot Price Silver :
S1: 18.44 R1: 19.21
S2: 18.17 R2: 19.71
S3: 17.67 R3: 19.98
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