FxWirePro- Silver Daily Outlook

Silver-

Ichimoku analysis (4-hour chart)

Tenken-Sen- $27.18

Kijun-Sen- $26.58

Silver hit a multi-year high due to economic optimism. It hit a high of $28.16 at the time of writing and is currently trading around $28.13.

The economic recovery in China and the chance of an early rate cut by the Fed support precious metals at lower levels.

Gold-silver ratio-

Gold/Silver ratio-  83.95. The ratio declined from 91 to 83.81 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.