Spot Silver Price Chart - Latest Silver Prices Daily Chart 1st June 2009

Spot Silver Price Chart - Latest Silver Prices Daily Chart 1st June 2009

As with spot gold prices silver prices too suffered as a consequence of Dollar strength, triggered by a dramatic fall in the price of crude oil, combining with both month end and quarter end liquidations and position squaring – a heady brew indeed.   As a result spot silver lost 25 cents overall and at one point reached an inter day low of $13.458 per ounce, a price point not seen since 6th May, although silver prices did eventually recoup some of these losses and closed the day at $13.660 per ounce.  From a technical perspective yesterday’s candle clearly illustrated the volatility nature of silver trading on the day, ending the session with a wide spread down bar but with deep shadows to both top and bottom.  The general downwards trend came as little surprise following the bearish “shooting star signal” that we highlighted in Friday market commentary.  In addition the high of yesterday found the 14 day moving average to be a barrier to any move higher, as for Friday, and with both the 9 and 14 day moving averages pointing firmly lower and with the 40 day now beginning to turn the tone is decidedly bearish at present.  To compound this picture yesterday’s close finished below the support level at $13.80/$14.00 which now presents a resistance level which will need to be broken before any reversal higher.  Given the downwards pressure of the moving averages and the general flavour of the daily silver chart we could now see a re-test at the $13.25 price point.

The short term trend is bearish, the medium term trend is sideways while the long term trend is bullish.

Support:    $13.458 (yesterday’s low)                                   Resistance: $14.380 (high of 19/06/09)

Support:    $13.250 (low of 06/05/09)                                   Resistance: $14.323 (high of 26/06/09)

Support:    $12.980 (low of 05/05/09)                                   Resistance: $14.140 (yesterday’s high)