Home » Spot Silver Daily News » Spot Silver – Daily Chart 7th April 2009

Spot Silver – Daily Chart 7th April 2009

Silver Prices Daily Chart - 7th April 2009

Silver Prices Daily Chart - 7th April 2009

Spot silver prices followed the price of gold lower yesterday, ending the day with a wide spread down bar, breaking well below the previous technical support level of $12.65, and with all three moving averages now adding to the bearish picture. As outlined in yesterdays commentary, the next level of support for the price of silver is well below at the $11.65 level, and we could see a re-test of this region in the next few days. What is interesting, and as I have outlined many times before, is that the fall in silver was greater on a percentage basis than the fall in gold, with silver prices falling 5% as opposed to gold prices which only fell 2% on the day. This is one of the relationships that always seems to stay constant, in that when prices fall, silver moves more in percentage terms than gold, but in a bull rally then the reverse is true with silver gaining more than gold. On the day silver lost 59 cents to finish at $12.120 per ounce.

With the bearish tone now firmly established my trading suggestions for today are as for yesterday, in other words attempt small short positions on an intra day basis, with a stop loss well above the $13.65 region. As always look for entry and exit positions on the shorter timeframe charts, and lock in profits with a trailing stop loss, or alternatively take your profits early. In particular look to enter on shooting star candles, or long legged doji candles which indicate reversals and excellent selling oportunities in any short term rally higher in the intra day silver chart.
The short term trend is bearish while medium and long term trends are bullish.

Support:    $12.050 (yesterday’s low)                                   Resistance: $13.020 (high of 18/03/09)

Support:    $11.858 (low of 27/01/09)                                   Resistance: $12.812 (yesterday’s high)

Support:    $11.637 (low of 29/01/09)                                   Resistance: $12.663 (high of 30/01/0