Spot Silver Prices Today - Candle Chart 4th February 2009

Spot Silver Prices Today - Candle Chart 4th February 2009

Concerns about the global economic outlook have undermined spot silver prices, yesterday but the white metal did better than gold closing marginally higher for the day forming a small doji candle, with the 9 day moving average providing support. As a cheaper alternative to gold, the recent silver buying is unlikely to be followed by mass liquidation given the uncertainty over the‘bad bank’ concept, details of stimulus package or other efforts in the whole bailout saga. The bullish momentum remains intact for the time being and if you are trading intra day or scalping, then I would suggest attempting small long positions with a stop loss below at the 11.40 level. It was interesting to note in the spot gold market that despite the bearish engulfing signal on Monday, this was not confirmed with any move lower, so in the short term this signal can be discounted for the time being.

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

Support:    $12.140 (yesterday’s low)                                   Resistance: $13.780 (high of 25/09/08)
Support:    $11.874 (14 day moving average)                   Resistance: $12.680 (high of 02/02/09)
Support:    $11.747 (high of 05/01/09)                              Resistance: $12.490 (yesterday’s high)