Silver Price Chart - Latest Silver Prices 16th June 2009

Silver Price Chart - Latest Silver Prices 16th June 2009

Yesterday’s rebound in the US dollar following positive statements from both Japan and Russia and poor equity market performance all contributed to a sharp decline in spot price silver which fell more heavily relative to spot gold.  With silver prices falling through minor resistance $14.55 the fall was accentuated as a result of the market triggering stops sitting below this support line.  Overall silver prices ended the day 53 cents lower at $14.22.  From a technical perspective, whilst yesterday’s wide spread down bar was a repeat of that of Friday, the significant aspect of this candle was the closing price and the support that was duly provided by the 40 day moving average.  Moving averages can often provide strong support to a move lower, or indeed a continuing trend higher as we saw in the past few weeks, so yesterday’s support should not be underestimated.  Indeed in this morning’s trading session we have seen the price of silver lift once again recovering some of yesterday’s losses with the 40 day moving average providing a cushion.  However, should this fail to hold we may see a re-test of the $14 per ounce level in due course and if this is breached then a deeper move to $13.50 and below beckons.

The short term trend is bearish, the medium term trend is sideways while the long term trend is bullish.
Support:    $14.030 (yesterday’s low)                                   Resistance: $15.002 (high of 22/05/09)

Support:    $13.830 (low of 12/05/09)                                   Resistance: $14.830 (high of 22/05/09)

Support:    $13.710 (low of 14/05/09)                                   Resistance: $14.740 (yesterday’s high)