Spot Silver Price Chart - Daily Silver Prices 29th June 2009

Spot Silver Price Chart - Daily Silver Prices 29th June 2009

Spot silver prices initially moved higher along with gold with the dip below the $14.00 per ounce seen by silver traders as buying opportunities.  However, the rebound was short lived as silver traders squared their positions ahead of the weekend and in anticipation of this week’s 4th July holiday and silver consequently ended the day lower at $14.070 per ounce.   As mentioned in Friday’s commentary silver prices appear to be tracking copper, the bellwether for the global economy and whose price is currently reflecting the mood swings of the market between optimism and pessimism and perhaps over-reacting to any news.  From a technical perspective Friday’s candle ended the session with a bearish feel closing on a doji with both the open and close of the trading session finding support from the 9 day moving average.  However, with the 40 day crossing the 14 day moving average the daily silver chart paints a decidedly bearish picture and the key to any deeper move will be whether the strong resistance now in place at the $13.80 per ounce and above region holds firm.  At present this seems to be the case, having already provided support last week, but only time will tell.

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

Support:    $14.040 (Friday’s low)                                      Resistance: $14.550 (high of 21/05/09)

Support:    $13.790 (low of 25/06/09)                                   Resistance: $14.380 (high of 19/06/09)

Support:    $13.600 (low of 23/06/09)                                   Resistance: $14.323 (Friday’s high)