Spot Silver Price - Silver Prices Daily Chart 17th April 2009

Spot Silver Price - Silver Prices Daily Chart 17th April 2009

Yesterday’s wide spread down bar in spot silver prices followed the price of gold lower, and more significantly closed below both the 9 and 14 day moving averages with silver prices now below all three which are weighing heavily on the chart.  Silver prices were not helped by a news report that the IMF was prepared to sell its entire gold reserve in a bid to raise money to assist developing countries, a move supported by both China and India.  In addition the retracement is also being blamed on falls in the price of copper which reacted to negative US housing start data.  As is often the case when metals fall in price, silver tends to fall further and harder on a percentage basis than spot gold, and indeed this was the case in yesterday’s trading.  As always the price of silver suffers both sides, as it has the dual personality of both precious and industrial status.  From a technical perspective there is nothing on the daily chart in the way of support between the current price and the next consolidation region at $11.40 and below, and should we see the minor support at $12.10 broken today then there is no reason to suppose that we will not see a move lower in the next few days.  My trading suggestion for silver trading today is to attempt small short positions intra day, taking any profits as soon as possible and not keeping any positions open over the weekend.

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

Support:    $12.130 (yesterday’s low)                                   Resistance: $12.549 (14 day moving average)

Support:    $12.028 (low of 07/04/09)                                   Resistance: $12.437 (9 day moving average)

Support:    $11.892 (low of 18/03/09)                                   Resistance: $12.405 (high of 09/04/09)