Spot Silver Price Chart - Silver Prices 12th May 2009

Spot Silver Price Chart - Silver Prices 12th May 2009

After an impressive 6 days rally, yesterday’s fall in spot price silver was not unexpected and was largely the result of some strength returning to the US dollar.   However, in late trading spot silver prices benefited from lower equities, thereby managing to recoup some of their initial losses and the price of silver eventually settled at $13.890 per ounce.  From a technical perspective yesterday’s candle closed the day with a long lower shadow suggesting that we could see silver prices rise in trading today with the bulls overcoming the bears in late trading to push prices back up once again.  With both the 9 and 14 day averages pointing and and the 40 day average beginning to turn upwards these are now adding their full support to any move higher and indeed in early trading this morning the price of silver has broken through the psychological $14.00 per ounce level and we now have the resistance at $14.50 clearly in our sights.   A break above this price level could see the way clear for silver prices to mount an attack on the $16.50 resistance in the medium to long term.  My trading suggestion for today is to attempt small longs on an intra-day basis using the 15 and 30 mins charts to identify buying opportunities.  I would suggest any stop losses are placed at or around the $13.25 region.

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

Support:    $13.670 (yesterday’s low)                                   Resistance: $14.610 (high of 20/02/09)

Support:    $13.590 (low of 23/03/09)                                   Resistance: $14.400 (high of 19/02/09)

Support:    $13.410 (low of 20/03/09)                                   Resistance: $14.050 (yesterday’s high)