Spot Silver Prices - Daily Candle Charts 27th March 2009

Spot Silver Prices - Daily Candle Charts 27th March 2009

The current picture for spot silver, is very much the same as for spot gold, with yesterday’s candle finishing the day as a small doji, with a long upper shadow, and marginally above all three moving averages which are now closing more tightly as each day passes, suggesting that we are likely to see a few days of sideways consolidation as the market waits for a raft of economic news next week, topped off by the G20 meeting in London. The trading volumes today are likely to be very thin, as many traders wait on the sidelines, and with the weekend ahead, then many will have squared their positions off early, exacerbating the already small volumes in the market.

Technically the price of silver has been more bullish than gold recently, so it was no surprise to see silver outperforming gold yesterday again as many traders continue to believe that the white metal is still under priced compared to gold and consequently a catch up is due. Silver gained 6 cents for the day to settle at $13.510/oz with the daily chart showing a market level above the moving averages and with a strong support level immediately below. Whilst my view remains that silver remains a bullish long term trade, in the short term for today, I would suggest small trades, using the short term 15 minute and 30 minute silver chart for your entry and exits as we are likely to see a relatively tight trading range today, and possibly for the next few days ( unless Mr Giethner opens his mouth again, or decided to make an unscheduled speech!)

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

Support:    $13.380 (yesterday’s low)                                   Resistance: $13.900 (high of 23/03/09)

Support:    $13.260 (low of 24/03/09)                                   Resistance: $13.855 (high of 20/03/09)

Support:    $13.210 (low of 06/03/09)                                   Resistance: $13.755 (yesterday’s high)