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Spot Silver Prices – Spot Silver Chart 4th May 2009

Spot Silver Price Chart - 4th May 2009

Spot Silver Price Chart - 4th May 2009

For once spot silver prices did not follow gold prices down but rather took their cue both from commodity prices, in particular rising oil and copper prices, as well investors who are beginning to eye the possibility of the world economy returning to some semblance of growth and normality.  Spot silver prices managed to gain 12 cents on Friday, closing at $12.470 per ounce.

From a technical perspective Friday’s doji candle provided an interesting signal with the long lower shadow and indecision in the market, suggesting that we could see a move higher in the next few days possibly to re-test the $13 per ounce price point and beyond.  It is interesting to note that the low of the day aligned neatly with previous low in early April suggesting that this may be providing a base for a firming of the silver price.  With the moving averages converging on the $12.75 price point, it is difficult at present to use these indicators with any degree of certainty as any small price move can effectively clear all three in one small move.  My feeling for this month is that we are likely to see further range bound trading between the $12 and $13.50 price levels which will provide any number of intra day swing trading opportunities, but probably little in the way for position or trend trading.  My suggestion for today is as for trading gold and to look for small intra day long positions, bearing in mind that many markets are closed today for national holiday celebrations, and therefore trading volumes may be thinner than usual, so trade with tight stop losses aiming for small profit targets.

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

Support:    $12.030 (Friday’s low)                                      Resistance: $13.010 (high of 03/04/09)

Support:    $11.980 (low of 22/04/09)                                   Resistance: $12.940 (high of 28/04/09)

Support:    $11.800 (low of 20/04/09)                                   Resistance: $12.625 (Friday’s high)