Spot Silver Prices - Daily Candle Chart 26th March 2009

Spot Silver Prices – Daily Candle Chart 26th March 2009

Silver prices rose with spot gold yesterday on bargain hunting following the previous day’s sell off. After a quick dip below the $13.00 mark, the white metal gained 9 cents to settle at $13.510/oz but its advance was capped after some selling pressure linked to silver’s industrial uses. Although the media hinted at a possible economic turn around based on recent data there is still a great deal of uncertainty in the markets which leads some market participants to invest in silver along with gold every time the price dips. The figures released in the US yesterday came in better than expected with New Housing Sales showing an increase for the first time in many months, followed by the Durable Goods data which suggested that deflationary pressures may be easing slightly, all of which helped silver stage a rally later in the session. In addition silver prices were helped higher on a weaker US dollar and uncertainty in the currency markets following comments from Treasury Secretary Timothy Geithner saying the US would be open to an expansion of the International Monetary Fund’s Special Drawing Rights programme.

Yesterday’s candle finished marginally up closing above all three moving averages and with a long, lower shadow suggesting that we should see a move higher today.  My suggestion for today’s trading is therefore to attempt small longs by looking for your entry point in the hourly chart with a stop loss below the 12.95 or lower.  In the short term we could see some further sideways movement before a resumption of the bullish tone of the last few weeks.

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

Support:    $13.321 (9 day moving average)                              Resistance: $13.855 (high of 20/03/09)

Support:    $13.260 (low of 24/03/09)                                        Resistance: $13.760 (high of 24/03/09)

Support:    $12.950 (yesterday’s low)                                           Resistance: $13.610 (yesterday’s high)