Spot Silver Prices - Daily Silver Chart 6th July 2009

Spot Silver Prices - Daily Silver Chart 6th July 2009

As with spot gold, silver prices too had a quiet day on Friday, only rising a mere 2 cents and the silver chart is now looking extremely vulnerable to further selling.  The decline in spot silver prices has been due to a combination of factors, including long liquidations and the stalling of equity markets.  However, one bright spot is that demand for silver coins has remained quite strong especially if inflation and worries about the status of the US Dollar.   However, technically the silver chart is extremely bearish and with the return of traders this morning, following the holiday weekend, this pattern has continued with silver prices falling almost 50 cents so far.  With all three moving averages now pointing sharply lower we need to consider the support levels which, if breached, could be the prelude to a much deeper move.  The first of these is rapidly approaching in the $13.00 per ounce level and if this fails to hold then we may see a considerably deeper move to re-test support in the $12.25 per ounce price point.  Much will depend on the fundamental picture and, in particular, market participants’ view of risk or otherwise, and at present the US is benefiting from some safe haven buying as risk appetite wanes with a consequent effect on commodities and equities.

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

Support:    $13.360 (Friday’s low)                                      Resistance: $14.140 (high of 30/06/09)

Support:    $13.250 (low of 06/05/09)                                   Resistance: $13.800 (high of 02/07/09

Support:    $12.980 (low of 05/05/09)                                   Resistance: $13.480 (Friday’s high)