Home » Spot Silver Daily News » Silver Spot Price – Daily Candle Chart 20th March 2009

Silver Spot Price – Daily Candle Chart 20th March 2009

Silver Chart - 20th March Daily Candle Chart

Silver Chart - 20th March Daily Candle Chart

Following yesterday’s wide spread up bar, we can now be confident that Wednesday’s candle was indeed a hammer signal which has now been confirmed,  with the bullish trend in spot silver prices now firmly re-established. Yesterdays candle crossed all three moving averages which are now providing excellent support to a move higher, and to add weigh to our decision we are seeing the identical trend in spot gold prices.

Spot silver followed gold sharply higher after the Fed announcement sent the dollar crashing down, which in turn rekindled inflationary concerns. As if it had some ‘unfinished bullish business’ compared to gold, silver rose more than the gold yesterday on a  percentage wise which is often the case when comparing the performance of the two metals. In a bullish move silver will often outperform gold, but in a bearish move the reverse occurs, so it is not always good news.  Some analysts suggested that technical buying accelerated the gains in silver which broke above the $13.00 mark, topping all the moving averages on our silver chart and peaking at $13.680, its strongest level since February 26th, a move we are seeing continue in this mornings early trading. My suggestion for today is therefore to attempt small longs with a stop loss below the $12.85 region and buy on any dips in the hourly chart. With yesterday’s candle pushing through the resistance at $13.25, this area is now providing us with an excellent support level should we see any short term profit taking later today. Remember that with the weekend ahead, trading volumes in spot silver will be thinner than usual, and with many traders squaring positions ahead of the weekend I would suggest you close out any profits early, and open new positions on Monday morning. Have a great weekend and good trading.

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

Support:    $13.210 (low of 06/03/09)                                   Resistance: $14.142 (high of 25/02/09)

Support:    $13.115 (40 day moving average)                             Resistance: $13.760 (high of 26/02/09)

Support:    $13.025 (14 day moving average)                             Resistance: $13.680 (yesterday’s high)

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