Home » Spot Silver Daily News » Spot Silver Prices Rise – 13th March 2009

Spot Silver Prices Rise – 13th March 2009

Spot Silver Daily Candle Chart - 13th March 2009

Spot Silver Daily Candle Chart - 13th March 2009

As with gold, spot silver prices rose again yesterday, but not in the dramatic way we saw in the spot gold markets. The candle of yesterday in the silver chart was certainly less than emphatic, ending the day as a small doji, only marginally above the 9 day moving average, and it is too early to say whether the short term bearish sentiment has now been reversed, although my view of the gold market would tend to suggest that this is indeed the case. So we seem to have a slightly confusing picture at the moment. Looking at the chart more closely we have a support level established at $12.45 with the lows of the candles of the last two weeks, and for any confirmed bullish momentum we will need to see prices move back above the resistance at $13.50, and should we see this today, then Monday may be the day to consider re-entering the market with small long positions, and only once we are back above all three moving averages. My only slight concern is that in the daily chart we have no clear signal that this is indeed a reversal so we need to wait for the moving averages and support lines to provide our trading signals. With traders squaring positions for the weekend and thinner market volumes on Friday, a wait and see approach is the best way forward today in my view.On Monday we’ll look at the weekly chart to see if that can provide a different perspective for us for next week’s trading.

On the fundamental news front the upward move in silver didn’t experience the same intensity as in gold possibly because markets are still digesting this week’s bearish economic news from China and Germany and the impact on industrial production. As I have said many times before, silver is now classified as an industrial metal, and therefore any economic news will tend to have a greater impact on the price of silver.

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

Support:    $12.640 (yesterday’s low)                                   Resistance: $13.410 (high of 09/03/09)

Support:    $12.410 (low of 03/03/09)                                   Resistance: $13.150 (high of 04/03/09)

Support:    $12.280 (low of 05/02/09)                                   Resistance: $13.087 (yesterday’s high)