Ichimoku analysis (4-hour chart)
Tenken-Sen- $31.73
Kijun-Sen- $30.47
Silver halted its three-week bullish trend and showed a minor profit booking. It hit a low of $30.95 yesterday and is currently trading around $31.66.
The increase in demand for solar panels and electrical vehicles is pushing silver prices higher. According to a Silver Institute, the global silver deficit is projected to rise as by 17% to 215.3 million ounces.
Gold-silver ratio-
Gold/Silver ratio- 76.47. The ratio decreased from 87.84 from 74.85, 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 200 EMA in the 4-hour chart. The near-term support is around $30.95 and a break below the target of $30.30/$30/$29.27. On the higher side, immediate resistance is around $32.50, and any breach above targets is $33.10/$34/$35. Major bullish continuations only above $35. Any breach above the target $37.50.
It is good to buy on dips around $30 with SL around $29 for TP of $35.
