Silver Spot Price Chart - 19th May 2009

Silver Spot Price Chart - 19th May 2009

Spot silver prices followed spot gold losing 12 cents to close at $13.810 per ounce but it is interesting to note that on a percentage basis the price of silver declined less than spot gold which is generally not the case when commodities fall, so yesterday was an anomalous day for various reasons.  Firstly there was no news of any consequence on the economic calendar causing many markets to behave in an irrational way and indeed equities posted triple digit gains whilst many currency pairs promptly reversed their bearish trend.  Secondly, with equity markets rising one would have expected this to have a knock on effect on silver given its status as an industrial metal and one could argue that this was partly the reason that the fall in the price of silver was less than that of gold.  From a technical perspective yesterday’s candle closed marginally below the 9 day moving average as an indecisive doji continuing the sideways price action which we have seen for the past few days around the $14.00 per ounce price point.  For any sustained move higher we need to see the $14.50 price mark breached with a degree of momentum, and if so we should see silver prices continue their bullish momentum supported by all three moving averages in due course.

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

Support:    $13.615 (yesterday’s low)                                   Resistance: $14.380 (high of 13/05/09)

Support:    $13.603 (14 day moving average)                             Resistance: $14.090 (high of 14/05/09)

Support:    $13.410 (low of 20/03/09)                                   Resistance: $13.952 (9 day moving average)