Silver: Where are the supports now?

Silver's price has been very resilient in the aftermath of the disaster in Japan. This is reasonable since precious metals are seen as a store of value and during crises, investors would seek to protect their wealth. So, where are the supports now? Is the price rising further or would it correct?

After touching almost a low of US$33.60 two days ago, silver has risen to US$ 35.04 now. You might remember me asking if silver is once again experiencing a shallow correction.

Technically, silver has tested the 20dMA which is now at US$34.22.  So, for anyone who would like to start a long position in silver and is afraid of missing the boat, initiating a position here could be a good idea. Buying at supports in an uptrend is conventional wisdom.

However, the MACD completed a bearish crossover with the signal line a while ago and it suggests that there is a slowing down in momentum. Having said this, the MACD is a lagging indicator and in very rapid movements, it could be a bit late.

For me, I am going to keep an eye on those supports and buy on any further weakness.