Home » Spot Silver Daily News » Spot Silver Today – 5th February 2009

Spot Silver Today – 5th February 2009

Spot Silver Daily Candle Chart - 5th February 2009

Spot Silver Daily Candle Chart - 5th February 2009

Following spot gold, spot silver moved higher as well, after reports that a possible Senate passage of the stimulus package could have big industrial implications which in turn could boost the demand for silver in industrial uses. News that non-manufacturing activity in January contracted less than expected provided extra support for the industrial metals which spilled over into spot silver prices. Whilst yesterday’s up bar was a relatively narrow spread, the interesting point to note is that in the last 12 days, the 9 day moving average has acted as a support line to the lower wick of each daily candle, always a good signal that the price trend is likely to continue in the short term. So my suggestion for trading today intra day, would be to attempt small long positions, with a stop loss around the $11.30 per ounce region. My longer term view for the price of silver is around $14, but in order to achieve this level we will need to see the strong resistance area at $13.50 breached, and then provide support to the up move.

The short, medium and long term trends are all bullish.

Support:    $12.300 (yesterday’s low)                                   Resistance: $13.780 (high of 25/09/08)

Support:    $12.140 (low of 03/02/09)                                   Resistance: $12.680 (high of 02/02/09)

Support:    $11.974 (14 day moving average)                             Resistance: $12.605 (yesterday’s high)