Silver Chart - Spot Silver Price Daily 21st April 2009

The sell off in the stock market prompted in part by fresh worries about the banking sector spooked investors and prompted yesterday’s  rise in the spot silver price. The move was significant given the strength of US dollar.  From a technical perspective yesterday’s up bar provided little in the way of a clear trading signal for daily silver prices, and certainly nothing to suggest that the current downward trend is likely to reverse in the next few days.  Indeed the high of yesterday failed to breach the minor support level at $12.10 and with prices still below all moving averages we can assume that, for the time being, the bearish feel remains firmly in place.  Given silver’s recent positive correlation with copper prices  and news today that China is having to sell 100 tonnes of the metal in order to re-balance its stocks, my suggestion for today is to look for small short positions on the intra day silver chart and using a tight stop loss, with any profits closed out quickly.

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

Support:    $11.800 (yesterday’s low)                                   Resistance: $12.351 (9 day moving average)

Support:    $11.637 (low of 29/01/09)                                   Resistance: $12.270 (high of 17/04/09)

Support:    $11.577 (high of 02/01/09)                                  Resistance: $12.190 (yesterday’s high)