Spot Silver Price Chart - Silver Prices 26th May 2009

Spot Silver Price Chart - Silver Prices 26th May 2009

Despite thin trading volumes as a result of a national holiday in both the US and UK spot price silver still managed to gain 3 cents to settle at $14.680.  The price of spot silver was also supported by the North Korean nuclear test situation and although there have been reports that China is increasing its base metal imports this is not evidenced by this morning’s reports that in fact such purchases by the SRB (Strategic Reserve Bureau) may have actually stalled.  From a technical perspective yesterday’s candle closed as an indecisive doji, and following on the back of last Thursday’s indecision would suggest a temporary reversal in silver prices, which we are seeing in this morning’s trading and which should provide excellent opportunities to buy into the market for longer term position trading to the upside.

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

Support:    $14.540 (yesterday’s low)                                   Resistance: $15.110 (high of 14/08/08)

Support:    $14.060 (low of 22/05/09)                                   Resistance: $14.940 (high of 13/08/08)

Support:    $13.970 (low of 18/02/09)                                   Resistance: $14.780 (yesterday’s high)