Silver Prices - Daily Candle Chart 2nd April 2009

Silver Prices - Daily Candle Chart 2nd April 2009

The technical analysis for spot silver is almost identical to that for spot gold, as silver prices followed gold higher ahead of the G20 and ECB meetings later on today and the US jobs report Friday, with short covering of positions offering some support for the white metal which gained 7 cents to close at $12.990/oz. Once again we saw a sideways consolidation on the silver chart, with the close finishing below all three moving averages once again, which are now converging around the $13.00 region in a tight configuration. For the short to medium term we will need to see this region of strong support to remain unbroken, if we are to see the bullish tone re-instated as I expect in the medium to longer term.

As I have already said on the gold site, many traders are now waiting on the sidelines until after the round of news in the next two days, and in particular any unexpected news from the G20 could create volatility across many of the market sectors, and with thin trading volumes, these effects could be uncertain and unpredictable. So my advice remains the same as for yesterday which is to stay on the sidelines for today, and to take a wait and see approach until all the relevant news has been released.
The short term trend is sideways while medium and long term trends are bullish.

Support:    $12.820 (yesterday’s low)                                   Resistance: $13.360 (high of 30/03/09)

Support:    $12.600 (low of 31/03/09)                                   Resistance: $13.257 (high of 31/03/09)

Support:    $12.490 (low of 11/03/09)                                   Resistance: $13.175 (yesterday’s high)