Home » Spot Silver Daily News » Silver Prices – Spot Silver 8th April 2009

Silver Prices – Spot Silver 8th April 2009

Silver Chart - Daily Candle Chart 8th April 2009

Silver Chart - Daily Candle Chart 8th April 2009

Spot silver prices moved higher yesterday along with gold prices finishing 18 cents up to settle at $12.317/oz partly as a result of investors and traders buying on the dips, along with squaring of their positions ahead of the long weekend. Silver prices also received extra support from another sell off in the Dow Jones, and with the start of the US corporate earning season, the stock market is undoubtedly starting to feel nervous, after such a long period of sustained bad news across virtually all the market sectors. If stock markets do come under pressure again, more money could move back into the traditional safe havens of gold and silver.

Yesterday’s candle has done little to suggest that the current bearish tone is likely to change in the short term, and in order to see any reversal in silver prices we will need to see three things – first a break back and through the resistance now above the market at $13 and beyond, secondly a move above all three moving averages, and finally a bullish signal in the daily or weekly candle chart. At the moment we have none of these in place, and with a long weekend ahead and traders already winding down their positions for the weekend, it seems likely that we may be in for a period of sideways consolidation in the short term. My suggestion for today is therefore to stay out of the market until early next week as with relatively little news and thin volumes we may see unexpected market volatility in the next 2 days.

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

Support:    $12.028 (yesterday’s low)                                   Resistance: $12.812 (high of 06/04/09)

Support:    $11.858 (low of 27/01/09)                                   Resistance: $12.663 (high of 30/01/09)

Support:    $11.637 (low of 29/01/09)                                   Resistance: $12.352 (yesterday’s high)