Spot Silver Price Chart 21st May 2009

Spot Silver Price Chart 21st May 2009

Spot price silver moved higher yesterday on the back of a weaker dollar gaining 5 cents to settle at $14.250 per ounce although in percentage terms the gains were not comparable to those seen in spot gold prices.  In its twin roles as a precious and industrial metal silver prices will only be boosted significantly once the global economy begins to recover and demand picks up.  In the meantime spot silver prices will no doubt continue to track and correlate inversely with the currency markets and, in particular, with a weaker US dollar.   From a technical perspective yesterday’s candle on the silver chart was indecisive ending the day as a spinning top or doji but still remaining above all three moving averages and with the lower shadow bouncing off the 9 day moving average, which is always an encouraging signal.  We are now approaching the $14.50 per ounce price point where we may see some sideways consolidation before the expected break out occurs in due course, and if so we will then be in a position to see a sustained move higher with very little in the way of resistance ahead.

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

Support:    $14.070 (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: $14.380 (yesterday’s high)