Spot Silver Prices - Daily Candle Chart 30th March 2009

Spot Silver Prices - Daily Candle Chart 30th March 2009

The gains in the US dollar were too strong on Friday and as a result spot silver prices declined along with other commodities such as spot gold. The white metal lost 20 cents to settle at $13.310/oz and crossed below the 9 day moving average closing last week with a down bar, but one with a long lower wick, which suggests that the reversal we are seeing at present may only be a temporary one, with the low of the day, higher than the low of Wednesday, which adds some weight to this analysis. In addition it appears from the silver chart, that the prices are bouncing off the support level immediately below, suggesting that this is holding at present, and reinforcing the view that in the longer term we should see the bull move continue in due course on the silver chart.

In percentage terms, silver dropped more than the spot gold, which could be explained by the fact that support for gold looks better in times of uncertainty, and certainly with a full week of fundamental news and market commentary ahead from the leaders of the worlds nations, we could see a very volatile week. Given the silver is trading in a relatively narrow rang, and against the backdrop of the G20 summit i London ( and all the likely announcements and initiatives) I would suggest trading is limited this week to short term opportunities in the 15 minute and 30 minute charts, and that we wait until next week before entering any longer term trades, with a break back above $14.50 being the first target on the horizon.

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

Support:    $13.080 (Friday’s low)                                      Resistance: $13.855 (high of 20/03/09)

Support:    $12.950 (low of 25/03/09)                                   Resistance: $13.755 (high of 26/03/09)

Support:    $12.861 (low of 05/03/09)                                   Resistance: $13.590 (Friday’s high)