Concerns about a severe economic slowdown continue to be the reason why silver lags behind gold on an upward trend but on the way down its move is exacerbated when compared to gold. Although the white metal is likely to feel extra pressure from also being an industrial metal as I mentioned in last weeks posts, its story also remains close to a weakening US dollar. The short term trend is sideways, medium term trend is bearish while long term trend is bullish.
Support: $9.980 (Friday’s low) Resistance: $10.797 (high of 06/11/08)
Support: $9.951 (14 day moving average) Resistance: $10.680 (high of 24/11/08)
Support: $9.797 (40 day moving average) Resistance: $10.530 (high of 11/12/08)