Spot Silver Daily Candle Chart - 25th March 2009

Spot Silver Daily Candle Chart - 25th March 2009

Monday’s sharp rally in equities proved too powerful to be ignored by spot silver investors and consequently daily silver prices fell yesterday along with spot gold. The candle on the day closed above all three moving averages, but more importantly the low of the day bounced off the 9 day moving average, suggesting that the reversal may be short term. With prices remaining above all three moving averages, and the support mentioned above, we need to take a wait and see approach today, before opening any further positions. Part of the reason for yesterday’s fall in the price of silver was the move in the currency markets with the US dollar strengthening which in turn added some extra pressure on spot silver prices. However, despite losing 28 cents to close at $13.420/oz, one difference on the silver chart compared to that of gold is silver stopping slightly above the moving averages, so once again we have a slight anomaly between gold and silver, which suggests that the bearish tone lacks momentum at present. My suggestion therefore is to wait and see, and to look for intra day trading opportunities only at present on a intra day trading basis, using the hour or shorter time frames for your entry and exits.

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

Support:    $13.260 (yesterday’s low)                                   Resistance: $13.900 (high of 23/03/09)

Support:    $13.232  (40 day moving average)                             Resistance: $13.855 (high of 20/03/09)

Support:    $13.210 (low of 06/03/09)                                   Resistance: $13.760 (yesterday’s high)