Spot Silver Daily Prices - 12th March 2009

Spot Silver Daily Prices - 12th March 2009

Spot silver prices moved up with spot gold,  breaking above the 40 day moving average, but only just, and on the day gained 22 cents to settle at $12.79/oz , with an extra boost from declines in equities and possible short covering. In a day when most base metals went down, silver bucked the trend and rallied, which could mean that along with deflation worries, the need for safe haven is still making an impact. However, with silver prices still below all three moving averages it is too early to say whether the short term reversal is over, and as always we need to wait for a confirmation signal in the charts. For a continuation of the bullish sentiment of the last few months we need to see a break back above the $13.55 region, with the moving averages providing support, but should prices break below the current support level at $12.45, then we could see a fall back to the $11.75 region. My view however remains unchanged, that the current bearish sentiment is short term, and we should see a return to the bullish tone of the last few weeks in due course, but for the time being we need to wait and see, and certainly until we have a confirming candle, backed by the moving averages.

The short term trend is bearish while medium and long term trends are bullish.

Support:    $12.490 (yesterday’s low)                                   Resistance: $13.410 (high of 09/03/09)

Support:    $12.410 (low of 03/03/09)                                   Resistance: $13.010 (high of 10/03/09)

Support:    $12.280 (low of 05/02/09)                                   Resistance: $12.890 (yesterday’s high)