Spot Silver Daily Price Chart - Latest Silver Prices 9th June 2009

Spot Silver Daily Price Chart - Latest Silver Prices 9th June 2009

Spot silver prices, along with other precious metals, fell more sharply than gold as a result of a resurgent US dollar and falls in equity markets, and the US dollar was also given a boost following a downgrade to Ireland’s credit rating to double AA, with a negative outlook, from double AA plus.  This is the second cut in three months and comes amid worries over the cost of bailing out the Irish banking sector.   Overall spot silver lost 24 cents closing the day at $15.00 per ounce and like gold, could continue to decline should the US dollar continue to strengthen, however from a technical perspective we may have slightly different picture.

Whilst yesterday’s down candle certainly indicated negative sentiment towards silver prices, there are one or two important points to note, moving forward. First, the candle has a deep lower shadow, suggesting that the selling pressure during the day was absorbed by the bulls. Secondly, the close of the day finished marginally below the 14 day moving average which could therefore be considered to be providing support. Finally, the low of the day failed to penetrate the minor support level at $14.65 per ounce, reinforcing the view that this may only be a temporary reversal before the previous rally is re-established once again. It is also interesting to note that the daily candle in the gold chart adds further evidence to this effect with a deep ‘hammer’ formation, which gives a stronger signal than that on the silver chart. One other small point which is worth noting, is simply that the price action this morning seems to be finding support below once again. Given the above comments my suggestion for today is to wait until tomorrow when we may see further confirmation of the above analysis.

The short and long term trends are bullish while medium term trend is sideways.

Support:    $14.710 (yesterday’s low)                                   Resistance: $15.950 (high of 04/06/09)

Support:    $14.620 (low of 28/05/09)                                   Resistance: $15.760 (high of 29/05/09)

Support:    $14.540 (low of 25/05/09)                                   Resistance: $15.460 (yesterday’s high)