Spot Silver Price Chart - Current Silver Price 14th July 2009

Spot Silver Price Chart - Current Silver Price 14th July 2009

Yesterday’s market action appeared to be one of “buy the rumour” as spot silver prices gained 17 cents to settle at $12.830 per ounce although at one point during the trading session silver did touch a low of $12.430 per ounce.  Despite this minor rally – a likely combination of short covering, mild optimism in advance of the earnings season and a slide in the US dollar – the silver chart still looks decidedly bearish.  Technically yesterday’s candle ended the session as a small hammer which may suggest a short term rally for silver and it is interesting to note that yesterday’s open was marginally gapped up from Friday’s close.  If this rally is to have any “legs” then we will need to see various elements combine, not least a break and hold above both the 9 and 14 day moving averages.  As always for any longer term trend we need to wait for the “hammer” candle to be validated and should this fail then we can assume that the bearish momentum remains firmly in place and silver prices are set to continue their downward slide towards the $12.00 per ounce level.  With Goldman Sachs expected to release stellar earnings before today’s bell this may well trigger a feeding frenzy across all markets so tight stops are the order of the day.

The short term trend is bearish, the medium term trend is sideways while the long term trend is bullish.

Support:    $12.430 (yesterday’s low)                                   Resistance: $13.150 (high of 08/07/09)

Support:    $12.180 (low of 30/04/09)                                   Resistance: $12.980 (high of 09/07/09)

Support:    $12.030 (low of 01/05/09)                                   Resistance: $12.870 (yesterday’s high)