Silver Spot Prices - Daily Silver Prices Chart 22nd May 2009

Silver Spot Prices - Daily Silver Prices Chart 22nd May 2009

Spot price silver started yesterday’s trading session under a degree of pressure as equity markets headed lower on renewed concerns about the global economy.  However, spot silver prices later rallied and tracked spot gold prices higher as the US dollar weakened against all major currencies with the result that silver settled 28 cents higher at $14.50 per ounce.  From a technical perspective silver prices closed the day on a wide spread up bar with the low of the day bouncing off the 9 day moving average which, once again, has provided additional support to the bullish momentum, and with the price of silver now marginally above the $14.50 price target outlined yesterday, and having broken above the resistance level at this region last seen in mid February we are now in a position to see a sustained attack at the strong resistance level of $16.50 and above.  With thin trading volumes expected today and Monday due to a national holiday in many countries my trading suggestion is to close out current profitable long positions from the last few days, bank your profits, and then look to open new long term trend trades early next week buying on any short term reversals as we look for a long term move higher in the price of silver.

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

Support:    $14.060 (yesterday’s low)                                   Resistance: $14.630 (high of 23/02/09)

Support:    $13.730 (low of 19/05/09)                                   Resistance: $14.600 (high of 24/02/09)

Support:    $13.615 (low of 18/05/09)                                   Resistance: $14.550 (yesterday’s high)