Spot Silver Prices - Daily Candle Chart 6th February 2009

Spot Silver Prices - Daily Candle Chart 6th February 2009

Despite a stronger US dollar, spot silver prices moved higher with gold on the same safe haven buying and also managed to hold the initial gains settling at $12.790/oz up 31cents for the day. All moving averages show a bullish picture with the white metal now targeting the $13.00/oz level last seen in Oct 2008. Today’s non farm payroll data should give a few indications about the state of US economy which in turn could provide trading opportunities for the silver market participants. As I suggested yesterday, the trade for the day was to try small long positions, and the same suggestion applies today, as the candle from Thursday was both wide and up, and also bounced off the 9 day average adding momentum to the move. I would suggest a stop loss around the 11.75 level. As I’m sure you know by now, long term I am bullish on spot silver prices. Good luck and good trading and have a great weekend.

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

Support:    $12.429 (9 day moving average)                              Resistance: $13.780 (high of 25/09/08)

Support:    $12.280 (yesterday’s low)                                   Resistance: $13.170 (high of 30/09/08)

Support:    $12.140 (low of 03/02/09)                                   Resistance: $12.935 (yesterday’s high)