Spot Silver Daily Price Chart - Current Silver Prices 1st May 2009

Spot Silver Daily Price Chart - Current Silver Prices 1st May 2009

In percentage terms spot silver prices were hit harder yesterday than gold, on a combination of technical selling and investors rediscovering their appetite for risk by moving back into the equity market.  Although silver prices managed to recoup some of these early losses as the gains in the equity markets faded, the price of silver fell by 31 cents to settle at $12.350 per ounce, breaking and closing below both the 9 and 14 moving averages.

From a technical perspective with prices now below all three moving averages we may see a gentle slide downwards or possibly consolidation in the $12 to $13 region as markets await any potential effect of the swine flu pandemic, which could provide the short to medium term direction.  My trading suggestion for today is to stand aside as many markets will be closed for the May Day holiday and trading volumes will, as a consequence, be very thin and price action erratic.

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

Support:    $12.180 (yesterday’s low)                                   Resistance: $13.010 (high of 03/04/09)

Support:    $12.110 (low of 09/04/09)                                   Resistance: $12.940 (high of 28/04/09)

Support:    $11.980 (low of 22/04/09)                                   Resistance: $12.810 (yesterday’s high)