Ichimoku analysis (4-hour chart)
Tenken-Sen- $28.37
Kijun-Sen- $28.40a
Silver lost its shine due to profit booking. It hit a low of $27.65 at the time of writing and is currently trading around $27.80.
The precious metal was one of the best performers in the past two months and surged more than $7 as demand for safe-haven assets like Gold increased. The escalation of tension in the Middle East also supports Silver at lower levels.
China’s Gross Domestic Product(GDP) grew by 5.3% in the first quarter YoY, above the estimate of 4.6%. The PBOC left its benchmark rates unchanged at 3.45% as expected.
Gold-silver ratio-
Gold/Silver ratio- 84.77. The ratio declined from 91 to 81.60, 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 -$30
It trades above 21, 55- EMA, and above 200 EMA in the 4-hour chart. The near-term support is around $27.50 and a break below the target of $27.20/$26.85/$26.25. On the higher side, immediate resistance is around $28.25, and any breach above targets is $28.68/$29.25/$29.53/$30.
It is good to buy on dips around $27.65-70 SL around $26.80 for TP of $30.
