Silver Prices Today - Daily Candle Chart 3rd February 2009

Silver Prices Today - Daily Candle Chart 3rd February 2009

We saw an ‘outside day’ in the silver price candle yesterday,but only just,and it fell short of providing any signal that the bullish move was coming to an end in the short term at least. The market nudged above yesterdays high but couldn’t maintain the strength, with prices falling below Friday’s low before recovering to close mid-range of the two days. This suggests that the rally is taking a ‘breather’ and by no means is an indicator that the trend has reversed. With support still showing from all the moving averages we would expect traders to buy on dips, and for daily spot silver prices to continue higher in the short term, so my suggestion for today would be to attempt small longs with stops below the $11.50 region.

The short, medium and long term trends are all bullish.

Support:    $12.182 (yesterday’s low)                                   Resistance: $14.030 (high of 28/08/08)

Support:    $12.108 (9 day moving average)                              Resistance: $13.780 (high of 25/09/08)

Support:    $11.747 (high of 05/01/09)                                  Resistance: $12.680 (yesterday’s high)