Spot Silver Prices - Silver Price Chart Daily Price 10th June 2009

Spot Silver Prices - Silver Price Chart Daily Price 10th June 2009

Spot silver prices benefited from yesterday’s re-emergence of dollar weakness, especially against the Euro so it was no surprise to see silver prices recovering, along with other metals, as markets begin to take a more optimistic view on the global economy.  Spot silver finished the trading session 24 cents higher at $15.220 per ounce.   From a technical perspective yesterday’s candle followed a similar pattern to that of Monday with both forming deep lower wicks, and whilst one was an up candle and the other was down, the sentiment of both was similar.  The defining characteristic of both candles was the deep lower shadow suggesting that the selling pressure during the trading session was absorbed by buying in the market, which would indicate that on both occasions silver prices found strong support at this level.  This would tend to suggest that despite the fact that we had two bearish signals last week, these seem to have been discounted by the market, with yesterday’s candle closing back above the 14 day moving average, and with prices pushing higher once again in early trading this morning.  For any sustained move we need to see a break and hold above the $16 per ounce price level, and with the dollar index suggesting further dollar weakness on the daily chart, then this should only be a matter of time.

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

Support:    $14.760 (yesterday’s low)                                   Resistance: $15.950 (high of 04/06/09)

Support:    $14.620 (low of 28/05/09)                                   Resistance: $15.760 (high of 29/05/09)

Support:    $14.540 (low of 25/05/09)                                   Resistance: $15.342 (yesterday’s high)