Spot Price Silver - Daily Silver Prices Chart 7th May 2009

Spot Price Silver – Daily Silver Prices Chart 7th May 2009

Once again the spot price silver continued to generate more momentum than gold moving up 35 cents to settle at $13.665, breaching the high set in late April and now looking set to challenge the $14.00 per ounce price mark.   Silver prices were also given a boost not only by a growing realisation that it is undervalued compared with gold, but also by renewed optimism on a recovery in the global economy which would lead to an increase in silver for industrial uses.   From a technical perspective yesterday’s wide spread up bar made it three in a row and with a follow through into this morning’s price action this could be followed by a fourth, which may well breach the $14.00 per ounce price point sooner than I expected.  With the 9 day now crossing the 40 day moving averages and with all three averages pointing higher we now have strong bullish signals supporting the move in the spot price silver chart, and we could now see a re-test of the $14.50 silver price level in due course.  My trading suggestion for today is once again to look for small long trades on an intra day basis with a stop loss below the $12.24 price point.

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

Support:    $13.250 (yesterday’s low)                                   Resistance: $14.000 (psychological level)

Support:    $13.080 (low of 27/03/09)                                   Resistance: $13.900 (high of 23/03/09)

Support:    $12.980 (low of 05/05/09)                                   Resistance: $13.830 (yesterday’s high)