Spot Silver Prices - Daily Chart 17th February 2009

Spot Silver Prices - Daily Chart 17th February 2009

Spot silver closed marginally lower yesterday losing 5 cents with the market seeing low volumes as expected and there are few conclusions we can draw from the daily candle as a result. However the move was in a tight range so it came as no surprise to see an ‘Inside Day’ where the high and low were engulfed by the previous day ones. All moving averages show a very bullish picture with the next target level of $14.00/oz expected to be challenged soon. With the trend very much still in place,my suggestion for today, as for spot gold, is to open long positions with a stop loss below the $12.75 region. Remember that in any bullish move spot silver prices are likely to perform better on a percentage basis than spot gold, but the converse is also true in a bearish move, so let’s not become over confident! My current target for spot silver is a break above the $14.50 per ounce region – if this happens then we should see a move higher, along with gold.

The short, medium and long term trends are all bullish.

Support:    $13.480 (yesterday’s low)                                   Resistance: $13.910 (high of 29/08/08)

Support:    $13.325 (9 day moving average)                              Resistance: $13.750 (high of 12/02/09)

Support:    $13.011 (14 day moving average)                             Resistance: $13.700 (yesterday’s high)