Home » Spot Silver Daily News » Silver Spot Price – Silver Price Chart 28th May 2009

Silver Spot Price – Silver Price Chart 28th May 2009

Spot Silver Chart 28th May 2009

Spot Silver Chart 28th May 2009

Unlike the spot gold price spot price silver staged a strong rally yesterday during which the price of silver managed to reach an intraday high of $15.002 per ounce, last seen back in August 2008.  The move was largely driven by improved investment demand – indeed silver prices have recently been correlating positively with the price of copper which although was down on Wednesday at $4,595 a ton is expected to move towards the $4,400 to $4,800 range on the back of strong demand from China.  All markets are very thin today as China, Hong Kong and Taiwan are closed for a national holiday.   In addition there is still a perception in the silver market that silver prices are still undervalued compared with gold.  During yesterday’s trading session although silver prices did pull back on profit taking the price of silver still settled 18 cents higher at $14.680 per ounce.  Despite the above from a technical perspective yesterday’s candle has provided us with a possible early warning signal of a reversal in silver prices with a strong shooting star which is characterized by a bar with a small body and deep upper shadow, suggesting bearish pressure has entered the market.   This is reinforced by the hanging man of Tuesday and the spinning top of Monday (albeit created on a low volume day).  All of these signals combine to indicate a possible short term reversal in silver prices and we need to wait for today’s price action for any clear additional signals to suggest whether there is any substance to this candle.  It is also interesting to note that gold and silver prices have diverged slightly in the last few days with silver moving higher, and gold moving lower, and indeed the gold chart also suggests some weakness in the short term.

The short and medium terms are sideways while the long term is bullish.

Support:    $14.430 (yesterday’s low)                                   Resistance: $15.002 (yesterday’s high)

Support:    $14.280 (yesterday’s low)                                   Resistance: $14.830 (high of 22/05/09)

Support:    $14.060 (low of 22/05/09)                                   Resistance: $14.780 (high of 25/05/09)