Spot Silver Price Chart - Currenct Silver Prices 11th May 2009

Spot Silver Price Chart - Current Silver Prices 11th May 2009

Silver continued to move higher flirting once again with the $14.00 per ounce price point. Spot price silver outperformed spot gold as non farm payroll data came in better than expected, fuelling speculation that the global demand for silver as an industrial metal would begin sooner than expected. The rally in spot silver which started at around $12.50 per ounce has seen silver prices rally for 6 days in a row and now looks set to re-test the $14.00 per ounce mark once again. An analysis of the weekly chart also suggests a similar picture with a wide spread up bar closing well above all three moving averages and providing a bullish engulfing signal. Should we see a break above $14.50 (a previous resistance level) then there is no reason to suppose that in due course we will see a testing of the strong resistance currently in place at $16.55. My trading suggestion for today is to buy small long positions on an intra day basis and should we see a break above $14.50 then look to build on these by adding further long positions as we move forward during the week.

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

Support: $13.780 (Friday’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 (Friday’s high)