Home » Spot Silver Daily News » Silver Prices – 1st April 2009

Silver Prices – 1st April 2009

Silver Prices - Daily Candle Chart 1st April 2009

Silver Prices - Daily Candle Chart 1st April 2009

Spot silver prices finished the day lower yesterday, closing below all three moving averages and with long wicks both above and below the body of the candle, with silver prices now approaching an area of strong support on the silver chart. Silver started the day marginally higher, but the high of the day bounced off the 40 day moving average which is a bearish signal, and one we should take as a warning signal for the next few days, and finally finished the day 11 cents lower to settle at $12.95/oz. It seemed as though the inability to hold above the $13.00 mark triggered some stop losses and as a result long liquidation occurred which sent silver to an intra day low of $12.60/oz. Increasing concerns about the car industry after General Motors’ Wagoner was asked to leave a few days ago  and speculation of a possible bankruptcy certainly didn’t help, but it is encouraging to note that with such bad news in the car industry at present, the price of silver has failed to fall fast in response to such dire news in the sector, perhaps reflecting the longer term bullish future for the metal.

Clearly the support region based around $12.50 – $12.80 will be significant in the next few days, and if there is a break below this area, then we could see move back down to re-test support, perhaps as low as $$11.50. For a move higher we will need to see a break back above all three moving averages with the $13.75 region providing support to a move higher. As with gold prices, it seems unlikely that we will see much significant movement before the completion of the G20 meeting in London and the ECB interest rates on Thursday, so my suggestion is the same as for gold, and that is to step aside from the market and wait until Friday before trading.

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

Support:    $12.600 (yesterday’s low)                                   Resistance: $13.410 (high of 09/03/09)

Support:    $12.490 (low of 11/03/09)                                   Resistance: $13.360 (high of 30/03/09)

Support:    $12.450 (low of 10/03/09)                                   Resistance: $13.257 (yesterday’s high)