Spot Silver Prices - Daily Silver Chart 9th July 2009

Spot Silver Prices - Daily Silver Chart 9th July 2009

The continuing sell off in spot silver comes as no great surprise given the lack of any action in the equities market and a stalling of the recent commodity bull run.  In addition once spot silver prices broke through the $13.00 per ounce price point sell stops were triggered and the decline accelerated on the silver chart.  Spot silver prices ended the day 24 cents lower finishing at $12.830 per ounce.  From a technical perspective yesterday’s down bar merely reinforced the bearish picture that we first outlined in our market commentary of two weeks ago, as a result of the shooting star candle of Monday 29th June.  The effect of this candle is still well in train and with yesterday’s candle closing below the $13.00 per ounce level, coupled with all three moving averages now pointing firmly lower we may sell see a deeper move to re-test the $12.00 per ounce support area in due course.  With silver prices now deeply entrenched in an area of broad sideways consolidation it will take a considerable degree of effort and momentum to break back and through this current congestion.  The key to the depth of the move will be signalled should we see a break below $12.50 per ounce which again will suggest a move a more significance.

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

Support:    $12.730 (yesterday’s low)                                   Resistance: $13.447 (high of 06/07/09)

Support:    $12.675 (low of 24/04/09)                                   Resistance: $13.380 (high of 07/07/09)

Support:    $12.550 (low of 14/04/09)                                   Resistance: $13.150 (yesterday’s high)