Home » Spot Silver Daily News » Spot Silver Prices – 3rd March 2009

Spot Silver Prices – 3rd March 2009

Spot Silver Price - Daily Candle Chart 3rd March 2009

Spot Silver Price - Daily Candle Chart 3rd March 2009

Spot silver prices moved down with gold settling slightly lower with the chart now showing the 9 day moving average crossing below the 14 day moving average. As I mentioned yesterday, the signals for us were confusing, with a bearish engulfing candle on the weekly chart, and a long legged doji on the daily chart, with an identical pattern in gold. Despite the market opening up in the morning session, prices fell during the day, confirming the weekly candle, with the pressure coming from continuing profit-taking, a strengthening US dollar and weaker stock markets dropping  lower and triggering margin calls in silver along with gold. Later in the trading session silver pared much of the losses which could indicate that safe haven buying is also playing a part. With the daily prices now well below both the 9 day and 14 day moving averages, it seems that the bearish signal is being confirmed, and the next key signal will be a penetration of the 40 day moving average. If this occurs in the next few days, then we could see a move back lower to test support in the $12.10 region. My suggestion for today is to take a wait and see approach, particularly as we will see considerable volatility in the next few days with several key interest rate decisions in Europe, with the week rounding off with Non Farm Payroll figures on Friday.

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

Support:    $12.700 (yesterday’s low)                                   Resistance: $13.673 (14 day moving average)

Support:    $12.476 (40 day moving average)                             Resistance: $13.590 (9 day moving average)

Support:    $12.280 (low of 05/02/09)                                   Resistance: $13.380 (yesterday’s high)