Spot Silver Prices - Daily Silver Chart 11th June 2009

Spot Silver Prices - Daily Silver Chart 11th June 2009

Despite pushing higher, along with spot gold, in early trading, and even managing to resist pressure from a stronger US dollar, spot price silver still finished flat on the day, opening and closing at the same price.  From a technical perspective yesterday’s candle ended the trading session as a long legged doji identical to that of spot gold, with the open and close finishing marginally above the 14 day moving average, which seems to be providing a modicum of support at this level.   It is interesting to note that we have yet to see any significant follow through from the two bearish engulfing signals of last week, and this may be indicative of a market that is resisting the downward pressure, and could also suggest that silver prices are waiting for a sustained move in the US dollar.  As a result of yesterday’s candle, which clearly indicates indecision in the market, and a general lack of direction, we may well see a period of consolidation at this price level over the next few days.  Fundamentally the market is also waiting for the unemployment claims and retail sales in the US which may provide us with a clue as to the short term direction for spot silver prices.  My trading suggestion is therefore to wait for the release of this data and technically for a break above all three moving averages once again or alternatively whether the $14.65 support will provide a firm barrier to any short term reversal.

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

Support:    $15.017 (yesterday’s low)                                   Resistance: $15.950 (high of 04/06/09)

Support:    $14.760 (low of 09/06/09)                                   Resistance: $15.760 (high of 29/05/09)

Support:    $14.620 (low of 28/05/09)                                   Resistance: $15.490 (yesterday’s high)