Spot Silver Price Chart - 5th May 2009 Daily Silver Prices

Spot Silver Price Chart - 5th May 2009 Daily Silver Prices

Spot silver prices continued to outperform spot gold prices on the back of a weaker dollar and better than expected construction and home sales data in the US.  Silver prices also mirrored positive moves in other metals such as copper which gained 2.7% on the day despite thin trading volumes as investors continue to take a more optimistic view of the global economy.  From a technical perspective silver closed the day on a wide spread up bar finishing comfortably above all three moving averages and closing marginally ahead of the $13 per ounce price point on a strong move upwards.  The key for the next few days will be to see whether this upward momentum can continue or whether the raft of economic data coupled with thinner volumes due to the Japanese extended holiday, and the bank stress results are likely to have a major impact across all the major markets.  To summarize trading in all commodities is likely to be difficult this week particularly in silver and gold which are both range bound therefore making swing trade the trading order of the day.  A sustained move above $13.75 will suggest a return of the bullish trend and a fall below $11.75 a possible breakout to the downside.  With the moving averages consolidating these provide little in the way of meaningful analysis at present, and as such we have to look to other market indicators for helpful analysis and direction.

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

Support:    $12.410 (yesterday’s low)                                   Resistance: $13.360 (high of 30/03/09)
Support:    $12.340 (low of 28/04/09)                                   Resistance: $13.240 (high of 27/04/09)
Support:    $12.180 (low of 30/04/09)                                   Resistance: $13.153 (yesterday’s high)