Silver Prices - Spot Silver Price Chart 23rd June 2009

With all commodities falling hard as profit taking hit the markets silver prices too tumbled along with gold, copper and the equities and lost a total of 42 cents and breaching the $14.00 per ounce price point at the same time.  From a technical perspective yesterday’s wide spread down bar injected a further degree of momentum into the bearish tone for spot silver following last week’s consolidation, and this has been further reinforced by the crossing of the 9 and 40 day moving averages (a bear cross).  In addition yesterday’s price move on the silver chart was significant for the fact that the interim support at just below the $14.00 per ounce level was also breached coupled with the opening price of the day having been gapped down, all of which adds to this bearish picture.  In the short term this move could be significant and considerably deeper and we may even see a re-test of the $12.75 to $13.00 price level in due course.  In my opinion the longer term picture still remains bullish if only because the market is not fully convinced that the US Dollar is the safe haven that it once was, or indeed is purported to be at present.

The short term trend is bearish, the medium term trend is sideways while the long term trend is bullish.

Support:    $13.680 (yesterday’s low)                                   Resistance: $14.380 (high of 19/06/09)

Support:    $13.410 (low of 20/03/09)                                   Resistance: $14.220 (yesterday’s high)

Support:    $13.250 (low of 06/03/09)                                   Resistance: $14.072 (high of 18/05/09)