FxWirePro- Silver Daily Outlook

Ichimoku analysis (4-Hour chart)

Tenken-Sen- $27.77

Kijun-Sen- $27.81

Silver is consolidating in a narrow range after hitting a high of $28.13. The commodity some of its gains made on Friday. It has declined sharply after upbeat US PCE data. US core Personal consumption expenditure surged to 3.1% y/y vs forecast of 2.9%. The monthly core Personal consumption came at 0.7% slightly above the estimate of 0.6%. The US dollar is struggling to hold above 90 levels, any breach above 90.50 confirms the further bullish continuation. The US 10- year yield declined more than 2.5% from minor top 1.622%. XAGUS hits an intraday high of $28.14 and is currently trading around $27.948.

Technically, silver's significant support is around $27.80, violation below will drag the pair down to $27.40/$27/$26.57/$26. Significant bearishness can be seen only if it breaks below $24.90.The near-term resistance is at $28.25, any surge past targets of $28.75 (the previous week high) $29.20/$29.70/$30.10 is possible. Major bullish continuation only if it breaks $30.

Indicator (4-hour chart)

CAM indicator –Neutral

 Directional movement index – Neutral

It is good to buy on dips around $27.50 with SL around $27 for TP of $30.