Home » Spot Silver Daily News » Spot Silver Price Chart – Silver Prices 5th June 2009

Spot Silver Price Chart – Silver Prices 5th June 2009

Spot Silver Price Chart - Silver Prices 5th June 2009

Spot Silver Price Chart - Silver Prices 5th June 2009

Just as spot gold prices bounced back strongly, spot silver too regained much of the previous day’s losses as dollar weakness re-entered the market following the ECB decision to maintain interest rates and worries that the recent recovery in the equity market may not be sustainable.   In addition the continuing perception that silver is undervalued to gold and therefore a bargain at its present price all helped to push the price of silver back towards the $16 per ounce level once again.  From a technical perspective, the wide spread up bar of yesterday, has provided a clear signal that the bearish warning sign that we saw on Wednesday has been ignored, and was therefore a false signal which we can now discount from our analysis. Indeed as I suggested at the time, the 9 day moving average was key, as it provided the support to the low of the day, a characteristic often seen in a rising market with any temporary retracement or reversal bouncing off the 9 day or 14 day moving average, before continuing the move upwards – always look for this in a rally ( and the reverse in a fall) as it is a sign of continued strength and continued momentum in the trend. With all three moving averages pointing higher we should see a breach and hold above the $16 per ounce in due course, with our $16.50 initial price target still firmly on the horizon. Remember that with the weekend ahead, we may see some squaring of positions later as commodity traders close ahead of the two day break, and with NFP this afternoon we could also see some interesing volatility across all markets!

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

Support:    $15.440 (low of 02/06/09)                                   Resistance: $16.210 (high of 08/08/09)

Support:    $15.130 (low of 29/05/09)                                   Resistance: $16.003 (high of 02/06/09)

Support:    $15.040 (yesterday’s low)                                   Resistance: $15.950 (yesterday’s high)