Home » Spot Silver Daily News » Spot Silver Prices – 4th March 2009

Spot Silver Prices – 4th March 2009

Spot Silver Prices - Daily Candle Chart 4th March 2009

Spot Silver Prices - Daily Candle Chart 4th March 2009

As I have just commented in the spot gold post for today, we were wise to take a wait and see approach yesterday, with our sixth consecutive down day in spot silver prices, following the bearish engulfing candle that we saw in the weekly chart. What is interesting about the candle from yesterday is that the low of the day, bounced off the 40 day moving average, which might suggest that we are about the see the first signs of a reversal, a view supported by the fact that the candle is a small hammer which has weight since it has appeared after a steep fall. However, as always we must wait and see if this signal is confirmed. On the fundamental news, a grim economic outlook reiterated by recent data releases raised concerns about industrial demand which always adds extra pressure on silver, as it is now classified an industrial metal rather than a precious one. It seems as if short time deflation has again retaken the top spot in investors’ worries.

My suggestion for today is to take a wait and see approach, and to view the current reversal as a buying opportunity into the longer term rally, and as always we need to wait for any signals of a reversal to be confirmed in the charts.

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

Support:    $12.519 (40 day moving average)                             Resistance: $13.436 (9 day moving average)

Support:    $12.410 (yesterday’s low)                                   Resistance: $13.380 (high of 02/03/09)

Support:    $12.280 (low of 05/02/09)                                   Resistance: $12.960 (yesterday’s high)