Spot Silver Chart 12 Nov 2009

Spot Silver Chart 12 Nov 2009

Spot price silver continued to find it hard going battling through the current price congestion, and ended the silver trading session marginally lower, with a relatively narrow spread down candle which found some support from the bunched moving averages once again. Technically of-course the issues on the daily silver chart is the potential resistance now building firmly in the $18 per ounce level and above which is becoming increasingly developed as the days pass, a worrying signal for silver bulls, with yesterday’s price action simply highlighting this issue once again. Whilst we have strong potential support we also have the resistance levels above, and as I have suggested many times in previous silver market commentaries, until this is resolved with a break out above or below these current levels, then the pattern for spot silver will remain sideways for the time being. With spot gold prices now having taken a breather with a minor pullback yesterday, we could well see this reinforced further today as gold traders bank profits and square positions ahead of the weekend, so for spot silver we could see a further move lower in the short term. However for the longer term we need to wait for a breach of the upper or lower levels of the current trend channel which will then set the tone for silver prices longer term.

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Support & Resistance for Spot Price Silver:

S1:  17.03     R1:  17.61

S2:  16.81      R2:  17.97

S3:  16.45     R3:  18.19