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Spot Silver Prices – Daily Chart 24th February 2009

Silver Prices Daily Candle Chart - 24th February 2009

Silver Prices Daily Candle Chart - 24th February 2009

Spot silver held up better than spot gold yesterday finishing near flat after moving into positive territory late in the trading session. I feel it is important to mention that spot silver prices reached a new recent high at $14.630/oz despite a weak performance for the day. As I have mentioned in previous reports the reason for silver outperforming gold lately is a falling supply which starts to offset the pressure of a weaker industrial demand in a cooling economy which saw the price of silver lagging gold in the first place. In addition many analysts and traders believe that silver has underperformed gold for some time and we are now starting to see this taking effect, with silver starting to outperform gold. This is very much in line with the data in the COT index, which I updated yesterday for the commercial traders, which shows a steady increase in selling from the commercial positions moving higher from the lows of several months ago, whilst the gold COT index is much higher and starting to approach the high end of the ratio at 70. Both these indicators suggest that we still have some way to go with the current trends.

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

Support:    $14.089 (yesterday’s low)                                   Resistance: $14.940 (high of 13/08/08)

Support:    $14.043 (9 day moving average)                              Resistance: $14.810 (high of 12/08/08)

Support:    $13.970 (low of 20/02/09)                                   Resistance: $14.630 (yesterday’s high)