Spot Silver Price Chart - Silver Prices 17th June 2009

Spot Silver Price Chart - Silver Prices 17th June 2009

Spot silver prices closed marginally higher gaining 2 cents on the day and crossing back above the 40 day moving average.  Although the early trading session was dominated by a strong rally on the back of a softer US Dollar, as the session progressed traders took their profits off the table in reaction to the less than inflationary US PPI data perhaps persuading investors to move out of precious metals back into the equity market.  Spot silver prices ended the day at $14.15 per ounce and virtually at the opening price.  From a technical perspective the picture for silver is much the same as for gold as we approach a delicate position on the silver chart over the next few days, with the combined influences of the US Dollar, crude oil prices and risk appetite in equities dictating the short term direction.  Technically yesterday’s candle provided clear evidence of this indecision closing the day balanced precariously on the 40 day moving average, much the same as in the gold chart.   Should this moving average fail to provide the required support then we may see a much deeper move possibly back to re-test the $13.55 region in due course should the support at $14.00 per ounce also fail to hold.  With the 9 and 14 day moving averages having crossed this suggests a bearish tone in the short term and if silver prices are to rally then we will need to see a break back above both these two averages coupled with a hold above the strong resistance now in place at $15.50.

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

Support:    $14.070 (yesterday’s low)                                   Resistance: $14.830 (high of 22/05/09)

Support:    $13.830 (low of 12/05/09)                                   Resistance: $14.550 (high of 21/05/09)

Support:    $13.710 (low of 14/05/09)                                   Resistance: $14.420 (yesterday’s high)