Ichimoku analysis (4-hour chart)
Tenken-Sen- $27.33
Kijun-Sen- $27.20
The Silver is trading flat despite strong US PCE data. It hit a low of $26.94 at the time of writing and is currently trading around $27.33.
Markets eye Chinese Manufacturing PMI and non-manufacturing PMI for further movement. Any upbeat PMI data will push silver prices higher as demand for industrial metals will increase.
Gold-silver ratio-
Gold/Silver ratio- 8541. 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 below 21, 55- EMA, and above 200 EMA in the 4-hour chart. The near-term support is around $26.39 and a break below the target of $25.54/$25. On the higher side, immediate resistance is around $27.75, and any breach above targets is $28/$29.45/$30.
It is good to sell on rallies around $ 27.68-70 with SL around $28.50 for TP of $25.
