Spot Silver - Daily Candle Chart Febraury 2009

Spot Silver - Daily Candle Chart Febraury 2009

Following the bullish engulfing signal of Tuesday, yesterday provided a wide spread up bar as suggested, which I hope allowed you to open long positions for you spot silver trades and I would suggest holding these for today, and until we receive a signal telling us to close out! We saw spot silver going up yesterday ( along with spot gold prices ) reaching the high of Sept 26th and gaining 37.5 cents for the day. It was a move dominated by the same safe heaven buying seen in gold with the investors still unconvinced that the present efforts to help the banking system is enough. The chart shows a very bullish picture with all moving averages pointing upwards, and my suggestion for today for new trades is to open small long positions with a stop loss below $12.75-$12.80 per ounce.  My only slight concern is the resistance immediately ahead, but a break through here should see spot silver rise to the $14.50 and above region in the next few days.

The short, medium and long term trends are all bullish.

Support:    $13.092 (yesterday’s low)                                   Resistance: $13.910 (high of 29/08/08)

Support:    $12.921 (9 day moving average)                              Resistance: $13.780 (high of 25/09/08)

Support:    $12.662 (14 day moving average)                             Resistance: $13.680 (yesterday’s high)