Home » Spot Silver Daily News » Spot Silver Chart – 18th March 2009

Spot Silver Chart – 18th March 2009

Spot Silver Prices - Daily Candle Chart 18th March 2009

Spot Silver Prices - Daily Candle Chart 18th March 2009

Yesterday’s wide spread down candle reinforced the bearish tone that we have been seeing in the last few days, closing below all three moving averages, and following the trend in spot gold prices. The key area for today will be the support level immediately below at $12.40, which to date has helped to keep prices from falling further. However should this area be breached today, we could see a re-test of support in the $12.10 region in the next few days, and possibly as low as $11.55 thereafter. The profit taking in silver occurred as the Dow Jones continued its bounce from last week record lows and could signal that investors are ready to release some of the capital invested in silver which would allow them to play the higher yielding stock market, but as I have suggested on the gold site, my own view remains unchanged in that I believe this is a short term rally based on hopes  rather than on facts. Whilst the housing figures came in better then expected, to suggest that this is the first sign of a recovery in the housing market is overly simplistic.  My view remains the same, that silver remains a good long term buy but in the short term I would suggest small short positions for today but with an eye on the support line that I have indicated on the chart for silver which could prevent prices falling further.  Remember also that on the fundamental news front we have some important releases later today including FOMC rate announcement amongst others so we could see some volatility in this afternoon’s and evening sessions and perhaps little movement during the day as the market waits for these figures.

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

Support:    $12.640 (low of 12/03/09)                                   Resistance: $13.312 (high of 05/03/09)

Support:    $12.630 (yesterday’s low)                                     Resistance: $13.220 (high of 16/03/09)

Support:    $12.490 (low of 11/03/09)                                   Resistance: $12.900 (yesterday’s high)