Spot Silver - Daily Candle Chart 19th February 2009

Spot Silver - Daily Candle Chart 19th February 2009

The same market forces that drove spot gold higher were also behind spot silver prices rising to a new recent high of $14.42/oz last seen in August last year. Worrying about a deepening recession is now a widespread topic in any conversation sending investors rushing for silver along with gold in growing numbers. Yesterday’s remarks from US officials did too little to calm markets, nervousness remains a presence in equities and as a consequence safe haven buying in silver doesn’t look to fade either. The candle yesterday was a wide spread up bar, as I suggested from the daily chart of yesterday, and if you are trading intra day today, then I would suggest that you exercise caution before opening any positions, as there will always be an element of profit taking after two strong days. The moving averages are all pointing to higher prices, and for the long term trades I would suggest you move your stops up today to the 13.40 region and lock in your profits.

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

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

Support: $13.654 (9 day moving average) Resistance: $14.810 (high of 12/08/08)

Support: $13.530 (low of 17/02/09) Resistance: $14.420 (yesterday’s high)