Spot Silver Prices - 23rd February 2009 Daily Candle Chart

Spot Silver Prices - 23rd February 2009 Daily Candle Chart

Following spot gold on a flight to quality buying, spot silver also reached a new recent high at $14.610/oz after an initial dip just below $14.00 level. In percentage terms the white metal has even outperformed gold which is often the case ( as I have mentioned several times before), but you have to be careful – in a bull run silver will often perform better than gold in percentage terms, but the converse is also true in a bear market, when silver will fall more quickly in price than gold! So it is a double edged sword. Many analysts now agree that for the second part of 2008 silver was left behind and there’s some lost ground to be regained.  Looking at the weekly chart this also confirms the strong uptrend and my only concern is the congestion area that we are currently battling through at the moment. In the short to medium term if spot silver breaks above the $15 per ounce level, then we should have a clear run up to $17 and above. My suggestion for today is small long positions with a stop loss below the $13.50 region.

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

Support:    $13.970 (Friday’s low)                                      Resistance: $14.940 (high of 13/08/08)

Support:    $13.934 (9 day moving average)                              Resistance: $14.810 (high of 12/08/08)

Support:    $13.850 (low of 19/02/09)                                   Resistance: $14.610 (Friday’s high)