Silver closed higher again, on the back of a weak US dollar but its strength lags behind gold. The reason for this as I mentioned in yesterday’s post is its double role both as a currency and also as an industrial metal. The morning news from the US about the failure to agree on the auto bailout also sent silver lower implying that sideways movements are still the current trend at present. The short term trend is sideways, medium term trend is bearish while long term trend is bullish.
Support: $9.936 (14 day moving average) Resistance: $10.797 (high of 06/11/08)
Support: $9.782 (40 day moving average) Resistance: $10.680 (high of 24/11/08)
Support: $9.450 (low of 08/12/08) Resistance: $10.530 (yesterday high)