Silver-
Ichimoku analysis (4-hour chart)
Tenken-Sen- $27.18
Kijun-Sen- $26.58
Silver traded higher for the second consecutive week and surged more than $3 following the footsteps of gold. It hit a high of $28.08 yesterday and is currently trading around $27.81.
The chance of an early rate cut by the Fed increased sharply after upbeat US jobs data.
Gold-silver ratio-
Gold/Silver ratio- 83.97. The ratio declined from 91 to 83.97 and well above the historical average of 52. So silver will outperform gold. It is good to buy silver at lower levels compared to gold.
Major trend reversal level -$28.20
The commodity broke significant resistance after one year of consolidation.
It trades above 21, 55- EMA, and above 200 EMA in the 4-hour chart. The near-term support is around $27.20 and a break below the targets of $26.85/$26.25. On the higher side, immediate resistance is around $28.20, and any breach above targets is $29/$30.
It is good to buy on dips around $27.20 SL around $26.50 for TP of $29.
