Home » Spot Silver Daily News » Silver Prices – Daily Silver Chart 9th April 2009

Silver Prices – Daily Silver Chart 9th April 2009

Silver Price Chart - Curent Silver Price 9th April 2009

Silver Price Chart - Curent Silver Price 9th April 2009

On the back of  stronger gold prices, spot silver too initially moved higher aided by a weaker US dollar.  Additional support for the price of silver came from a rise in the both the price of oil and the price of copper.   But as  gold retraced so did silver, losing 5 cents for the day to close at $12.272/oz.  Going forward, the silver market is likely to see a clash between investors with a renewed risk appetite looking to sell any rally and those who still consider silver as a cheaper safe haven alternative to gold, buying on the dips.

From a technical perspective on the silver chart the bearish tone for silver prices remains in place with all three moving averages pointing lower and with no indication at present of any reversal to this trend in the short term, with yesterday’s candle closing as a small spinning top, indicative of the approaching long weekend with most traders having squared positions early and taken advantage of the long holiday.  For any reversal and return to a bullish momentum we will need to see several factors combine.  First a break through and above the strong resistance now in place in the $12.78 to $13.78 region with wide spread up bars with no upper wicks.  Secondly we will need to see a move back above all three moving averages, and finally in the daily or weekly charts a strong bullish reversal signal which we have yet to see.

The trigger for any reversal could well come next week as the US corporate earning season gets into full swing, but unlike gold this could be a double edged sword with any bad news seen as detrimental to silver prices given its status as an industrial metal, as opposed to gold which is classified as a precious metal.  One has to counter balance this with the investment potential for silver, and it will be interesting to see how this dynamic plays out in the next 2 to 3 weeks. My trading suggestion for today is to stay out of the market as there is likely to be little in the way of trading opportunities, even in the shorter time frames.

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

Support:    $12.169 (yesterday’s low)                                   Resistance: $12.812 (high of 06/04/09)

Support:    $12.028 (low of 07/04/09)                                   Resistance: $12.663 (high of 30/01/09)

Support:    $11.858 (low of 27/01/09)                                   Resistance: $12.485 (yesterday’s high)