Home » Spot Silver Daily News » Spot Silver Prices – 2nd March 2009

Spot Silver Prices – 2nd March 2009

Spot Silver Prices - Daily Candle Chart 2nd March 2009

Spot Silver Prices - Daily Candle Chart 2nd March 2009

Like spot gold, spot silver prices moved higher in early trading only to fall in afternoon trading finishing the day marginally lower and dipping below $13.00 level again. Once again, the main driver was the troubled financial sector within the stock market which in turn was influenced by news that a plan will give the US government a large stake in Citigroup, providing an interesting week on the daily and weekly candle charts. The problem for us as traders is that on the weekly candle chart, we have a bearish engulfing signal for the week, and on the daily chart we have a long legged doji, suggesting a possible turning point in the market, with prices now firmly below the 9 day and 14 day moving averages. As a result we need to consider our trading strategy very carefully this week with these conflicting signals. For long term trading we need to take a wait and see approach and wait for the signal to be confirmed, or otherwise in the weekly chart, and to see whether this is a longer term reversal in trend, or simply a short term breather in the market before moving higher once again. My own view is the latter, and my bullish view of the market remains unchanged for the time being. If you are trading intra day, then I would suggest small long positions may be appropriate for today, with a stop loss below the $12.45 region or below.

In summary, for the longer term we need to wait and see whether the bearish signal in the weekly charts is indeed confirmed, and for day trading a small long position ( but very speculative ) may be the option for today with a stop loss below the $$12.45 region as outlined above. Despite the correction I still believe that the upside momentum is still intact given there’s no end in sight for troubles in the financial sector.

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

Support:    $12.810 (Friday’s low)                                      Resistance: $13.796 (9 day moving average)

Support:    $12.730 (low of 10/02/09)                                   Resistance: $13.745 (14 day moving average)

Support:    $12.448 (40 day moving average)                             Resistance: $13.372 (Friday’s high)