Current Silver Prices - Daily Candle Chart 17th March 2009

Current Silver Prices - Daily Candle Chart 17th March 2009

Following Friday’s solid move higher through all three moving averages, yesterday’s silver chart was disappointing, with the candle opening gapped down on Friday’s close, then failing to hold the high of the day, and finally settling back into the congestion of the moving averages once again, with a very similar pattern to spot gold.

As was the case with gold, the silver market is beginning to see a shift in sentiment in the short term with some investors moving out of silver market and back into recently improving equities. As a result silver lost 26 cents which in effect completely denied the previous day gains. If the recovery in the stocks will continue it is very likely that safe haven type of investments such as silver, widely considered a cheaper alternative to gold will be hurt and we could see a temporary reversal in the short term. However one must remember that much of the current bounce in equities can be attributed to comments by Bernanke suggesting the recovery could start later in the year. Quite why anyone would take any notice of his comments is beyond me, but there we are – he has suddenly become a financial visionary, despite not seeing the train coming at him in the first place!! My long term view remains the same as I believe the bullish momentum will return in due course. My suggestion for today is to wait for longer term trades, and for intra day I will be posting later with suggestions as the market opens in the US. The latest silver price can be found on the silver price chart.

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

Support:    $12.780 (yesterday’s low)                                   Resistance: $13.410 (high of 09/03/09)

Support:    $12.640 (low of 12/03/09)                                   Resistance: $13.312 (high of 05/03/09)

Support:    $12.490 (low of 11/03/09)                                   Resistance: $13.220 (yesterday’s high)