Spot Silver Prices - Daily Candle Chart 11th February 2009

Spot Silver Prices - Daily Candle Chart 11th February 2009

Following spot gold, spot silver prices closed higher peaking at $13.230/oz, the strongest level since Sept 30th. The chart shows an outside day pattern providing an excellent bullish engulfing signal for us today, with the 9 day moving average providing good support level for the past few weeks. Perceived as a cheaper alternative to gold, the white metal is also bought as a hedge against the potential inflation coming from the US economic stimulus plan. My suggested trade for today is therefore small long positions with a stop loss set below the $12.30 region. With all the moving averages still pointing to an upwards trend, which is also confirmed by the COT report figures for commercial traders, this is looking an excellent trade for the medium to long term, as I have been suggesting for some time now.

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

Support:    $12.765 (9 day moving average)                              Resistance: $13.640 (high of 26/09/08)

Support:    $12.730 (yesterday’s low)                                   Resistance: $13.390 (high of 29/09/08)

Support:    $12.512 (14 day moving average)                             Resistance: $13.230 (yesterday’s high)