Spot Silver Prices - Daily Candle Chart 18th February 2009

Spot Silver Prices - Daily Candle Chart 18th February 2009

‘Flight to quality’ was the name of the game for spot silver rising with spot gold amid the same bank concerns breaking and holding above the $14.00/oz level, and as I suggested yesterday, we achieved our target of breaking through the $14 per ounce region, with a wide spread up bar on the day. All the moving averages pointing to a continued move higher, so if you have your positions open from yesterday, I would suggest moving your stop loss up somewhere below the opening price for yesterday around $13.25 region. With strong support now in place out next target is the congested area at 16.50 per ounce, which I believe we may see in the next few weeks.

On the fundamental news front, what actually put fear into the market was a warning by credit ratings agencies that European banks could see downgrades following a rapid economic deterioration in Eastern Europe where they have a lot of investments. As a result safe haven buying in silver along with gold looks set to continue.

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

Support:    $13.530 (yesterday’s low)                                   Resistance: $14.940 (high of 13/08/08)

Support:    $13.494 (9 day moving average)                              Resistance: $14.810 (high of 12/08/08)

Support:    $13.230 (low of 13/02/09)                                   Resistance: $14.215 (yesterday’s high)