Silver Spot Price Chart - 16th July 2009 Latest Silver Prices

Silver Spot Price Chart - 16th July 2009 Latest Silver Prices

As with spot gold, spot silver prices too rallied strongly yesterday, even managing to outperform gold in percentage terms as the silver chart responded to the general feel good factor emanating from the equity markets. This in turn sparked a dramatic slide in the US Dollar as investors rediscovered their appetite for risk, believing that the global economy may now recover sooner rather than later.  From a technical perspective once spot silver prices had powered their way through the $13.00 per ounce price handle, no doubt triggering the buy orders clustered at this level, they managed to gain a total of 40 cents on the day closing out at $13.300.   The wide spread up bar opened the day below the 9 day moving average but closed marginally above, suggesting a degree of momentum, however, with substantial resistance ahead and huge clear water between the current price point and the 40 day moving average it is too early to suggest that this rally will be sustained.  Much will depend on the fundamental landscape which is being driven by reduced risk aversion in the equity markets with a consequent decline in the US Dollar which is weakening daily.  With the earnings season in full swing and with bellwether, blue chips stocks as IBM and Google reporting later today it will be interesting to see whether this rally continues or turns out to be no more than a short squeeze.

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

Support:    $12.880 (yesterday’s low)                                   Resistance: $13.592 (high of 05/05/09)

Support:    $12.780 (low of 14/07/09)                                   Resistance: $13.447 (high of 06/07/09)

Support:    $12.750 (low of 09/07/09)                                   Resistance: $13.377 (yesterday’s high)