silver spot

Spot Silver 8 July 2010

The 200 day moving average once again came to the rescue for spot silver yesterday with the low of the day at $17.54 per ounce finding a platform of support from this key indicator which also supported the pullbacks both in early June and early May.  The silver trading session ended with a narrow spread up candle but one with a deep lower wick and which confirms the reversal signalled by the 2 previous long leg doji candles as a result.  Despite  the silver trading closing above the psychological $18 per ounce price point we still have some way to go to regain the recent longer term momentum and the first step will be a break and hold above $18.50 per ounce which should clear recent short resistance as well as breaking above all four moving averages once again.

silver spot

Spot Silver Chart (Monthly) July 2010

The longer term picture for silver remains firmly bullish with the 9 month moving average, in particular, providing strong support.  However, with two consecutive long leg dojis on this chart we may expect to see a pullback before the longer term upwards trend can resume.

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