Daily Spot Silver Prices - January 26th 2009

Along with spot gold , spot silver prices rallied substantially and broke through short term resistance. A hold of the key $11.75 level will technically point to a new potential trading range of $2.50 in the coming weeks with the upside target just short of $14. Silver is also benefiting from a similar safe haven status along with gold, despite the fact that it is classified as an industrial metal, and further economic woes are also likely to support the metal. However due to the industrial nature of silver it is likely to lag gold somewhat if there are fears of further demand deterioration due to recessionary pressures.Remember that whilst spot silver and spot gold prices follow one another, in a bull move, spot siver prices will often outperform those of gold, but in a bearish move the same applies! As you know I am bullish on silver in the medium to long term.

Silver`s break higher on Friday was an important positive technical move that has cleared the way for a rapid move towards the resistance in the $14 per ounce area. This move has now reinforced the breakout from the sideways movement of the last few weeks, and confirmed the short term up move to the next level.

The short term trend is up, the medium term trend is sideways while the long term trend is bullish.

Support: $11.747 (high of 05/01/09) Resistance: $12.510 (high of 02/10/08)

Support: $11.600 (high of 09/01/09) Resistance: $12.320 (high of 12/10/08)

Support: $11.242 (9 day moving average) Resistance: $12.092 (Fridays high)