spot silver

Spot Silver Chart 18 Nov 2010

Spot silver snapped back higher today reclaiming much of the lost ground of the past few days to trade back above all four moving averages once again at $26.84 at time of writing. The move higher was signalled by yesterday’s hammer candle which followed Tuesday’s doji candle which also signalled a pause and potential reversal point.  Much of the gain in the commodity sector today has been triggered by a return to dollar weakness as the problems in Ireland are addressed by the EU with a consequent return to a “risk on” appetite.  As outlined in a previous post the recent re-tracement is nothing more than a temporary pause triggered by fundamental issues such as the Irish debt problems & a slowdown in China, but do not constitute a significant reversal in sentiment and market direction for spot silver.  As such expect to see the commodity resume its longer term trend higher and any break above $28 per ounce will then create a springboard for a bullish end to the year.

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