Spot Silver Price Chart - Daily Silver Prices 13th May 2009

Spot Silver Price Chart - Daily Silver Prices 13th May 2009

Yesterday’s wide spread up bar on the daily silver chart added further momentum to the upwards trend breaking through the psychological $14.00 per ounce level as outlined in yesterday’s silver trading commentary and silver prices finished the day at $14.28 per ounce – a 38 cents gain on the day.  With all three moving averages pointing higher we are now in sight of attacking the high of early February at $14.55 per ounce and should we breach this level either today or later in the week then we should be in a position to look towards significantly higher prices for silver in the forthcoming weeks, possibly re-testing the resistance at $16 to $16.50 price band in due course.  The current momentum is a combination of technical buying coupled with stronger sentiment in equity markets and a weaker US dollar as risk appetite returns.  My trading suggestion for today is again to look for long positions on an intra-day basis looking to build on these should we break above $14.55 or higher.

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

Support:    $13.830 (yesterday’s low)                                   Resistance: $14.610 (high of 20/02/09)

Support:    $13.670 (low of 11/05/09)                                   Resistance: $14.400 (high of 19/02/09)

Support:    $13.590 (low of 23/03/09)                                   Resistance: $14.350 (yesterday’s high)