Spot Silver Prices Today - Daily Chart January 28th 2009

Spot Silver Prices Today - Daily Chart January 28th 2009

Spot silver is forming a strong technical pattern along with spot gold, and in addition is also forming a pennant. Many technical traders confuse the flag and pennant formation, but in simple terms a pennant is formed when the congestion area has higher highs and lower lows, creating the pennant shape, whereas the flag is created with highs and lows at the same or similar levels. Pennants in particular are often excellent signals for an impending breakout, with prices converging to a point before the breakout occurs, and I use them frequently for placing a directionless trade using options, where volatility is the key to success, and direction is unimportant.

For spot silver prices today, an upside breakout points to around $14.50 but is currently trading over a dollar in excess of the 40 day moving average down at $10.90.

The short term trend is up, the medium term trend is sideways while the long term trend is bullish.

Support:    $11.747 (high of 05/01/09)                                  Resistance: $12.510 (high of 02/10/08)

Support:    $11.600 (high of 09/01/09)                                  Resistance: $12.320 (high of 12/10/08)

Support:    $11.419 (9 day moving average)                             Resistance: $12.288 (high of 26/01/09)