Silver Spot Price 20 Nov 2009

Silver Spot Price 20 Nov 2009

A worrying  signal for spot price silver traders on Friday, as Thursday’s hanging man candle of Thursday was repeated the following day by a more pronounced candle with a deeper lower wick, which merely served to reinforce the bearish sentiment which appears to be creeping into the commodities market in general, with both gold and silver exhibiting this aspect in the daily candles. For spot price silver this aspect is more pronounced than gold at present which managed to climb higher, but the move was far from convincing, and in the case of silver certainly confirmed the bearish undercurrent at present at this price level. However, on the positive side, the low of Friday found strong support from the 9 day moving average, with the low of the session bouncing firmly higher from this key indicator and with all three moving averages pointing firmly higher this is somewhat at odds with the technical picture from the candles themselves. In due course we may see these signals ignored  by the market as it continues to push higher in the medium term, but for the short term we would do well to take note of these technical signs, which could be an early warning signal to a short term reversal. Longer term, with the deep potential support region below, the outlook remains positive for the silver spot price, but in the short term we may see a reversal lower before the trend continues higher once again.

Support & Resistance for Spot Price Silver :

S1:  18.12    R1:  18.68

S2:  17.79   R2:  18.91

S3:  17.56   R3:  19.24

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