Spot Silver Price Chart -Dailly Candlesticks 23rd March 2009

Spot Silver Price Chart -Dailly Candlesticks 23rd March 2009

Unlike spot gold which finished Friday’s trading session marginally lower, spot silver continued to build on the previous day’s significant rally gaining another 28 cents to settle  at $13.80/oz. The silver chart now shows the price of silver above all moving averages and a crossover between the 9 and 40 day moving averages which are positive signs for the bulls. From a fundamental perspective, governments pursuing a policy of quantitative easing in the current financial crisis is supportive for future silver prices as well, since inflation is set to return with a vengeance further down the line. The daily candle on Friday was a wide spread up bar, and my suggestion for today is therefore to attempt small long positions, with a stop loss below the $12.55 region, and to lock in profits by moving the stop loss higher in due course. We should now see a move higher to retest the resistance at $14.45, and a move beyond this region could see a break to $17.45 and beyond.

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

Support:    $13.410 (Friday’s low)                                      Resistance: $14.215 (high of 17/02/09)

Support:    $13.267 (9 day moving average)                              Resistance: $14.142 (high of 25/02/09)

Support:    $13.206 (40 day moving average)                             Resistance: $13.855 (Friday’s high)