Spot Silver Daily Candle Chart - 25th February 2009

Spot Silver Daily Candle Chart - 25th February 2009

Spot silver declined sharply yesterday closing 69 cents down hit by the same rally in the Dow which affected the bulls in spot gold. It was a significant drop as the chart shows a break below the 9 day moving average with the price of silver holding just above the 14 day moving average and going through the $14.00 level in the process. Going forward silver along gold will likely to stay closely linked to the equities which in turn should get the next direction from further global economic news. My own view is that the statement from Bernanke will soon be forgotten as the markets absorb other more important fundamental news, and that we should see yesterday and possibly today as buying opportunities for the continuation of the bull rally. My suggestion for today is therefore to take a wait and see approach this morning, and then to buy into any reaction back up with a stop loss set below the $12.85 region.

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

Support:    $13.690 (yesterday’s low)                                   Resistance: $14.600 (yesterday’s high)

Support:    $13.530 (low of 17/02/09)                                   Resistance: $14.215 (high of 17/02/09)

Support:    $13.480 (low of 16/02/09)                                   Resistance: $14.011 (9 day moving average)