Spot Silver Prices - Daily Candle Chart 10th March 2009

Spot Silver Prices - Daily Candle Chart 10th March 2009

Today we move back to looking at the daily candle chart for spot silver, with yesterday’s price action producing a very similar picture to gold, with a wide spread down bar falling below through the 14 day moving average, but closing above the lows of the day. The key point for today will be to see whether the 40 day moving average provides any support to the move down – if not then we could see a re-test of the $12.50 per ounce region of last week. My view of the market however remains the same as before. In the short term we are likely to see prices moving lower, before moving higher in the longer term, partly reflecting the ‘toppy’ price action we are now seeing in spot gold prices. Should the fall in silver prices continue for the next few days, then this should be seen as buying opportunities once we see a confirming signal in the charts.

On the broader picture part of the reason for the fall in spot silver yesterday was as a result of a move lower in gold, which was hit by a strong US currency. The move was perceived as a change in investors’ preferences for a safe haven turning to the dollar rather than silver and gold.

The short term trend is bearish while medium and long term trends are bullish.
Support:    $12.750 (yesterday’s low)                                   Resistance: $14.215 (high of 17/02/09)

Support:    $12.660 (low of 04/03/09)                                   Resistance: $13.760 (high of 26/02/09)

Support:    $12.410 (low of 03/03/09)                                   Resistance: $13.410 (yesterday’s high)