Spot Silver Prices - Daily Candle Chart 24th March 2009

Spot Silver Prices - Daily Candle Chart 24th March 2009

Spot silver held its ground better than gold prices yesterday,  finishing the day marginally lower, losing 8 cents to settle at $13.712/oz. The move was largely influenced by the Public – Private Investment Program announced by the Treasury which aims to restore a measure of confidence in the financial system so the benefits for silver as a safe haven buying were reduced. Performing better than gold was interpreted as yet another sign of silver being under priced compared to the yellow metal so consequently after falling in early trading market participants decided to buy on bargain hunting.

The candle finished the day as a small doji, but closed well above all three moving averages suggesting that the bullish trend is still firmly in place, and as suggested in the gold commentary today, the move lower was hardly significant given the rise in equity markets on the news from the Treasury. My suggestion for today is therefore the same as for spot gold, and that is to buy into the market for longer term positions, using the hourly charts for your entry and exit points. I would suggest placing stop losses below the support level at the 12.25 region or below. I have updated the COT index with the latest weekly data which also confirms the bullish sentiment.

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

Support: $13.590 (yesterday’s low) Resistance: $14.215 (high of 17/02/09)

Support: $13.410 (low of 20/03/09) Resistance: $14.142 (high of 25/02/09)

Support: $13.254 (9 day moving average) Resistance: $13.900 (yesterday’s high)