Ichimoku analysis (4-hour chart)
Tenken-Sen- $29.20
Kijun-Sen- $29.45
Silver pared some of its gains on mixed Chinese data. It hit a high of $29.45 yesterday and is currently trading around $29.19.
Chinese retail surged to 3.7% in May, well above the forecast of 3%. Industrial production slowed down to 5.6% in May vs. an estimate of 6.2%.
Softer US CPI and PPI data increased the chance of a rate cut by the Fed in Sep. The easing of US treasury yields also supports silver prices at lower levels.
Geopolitical tension in the Middle East and France prevents further sell-off in Silver.
Gold-silver ratio-
Gold/Silver ratio- 79.50. The silver took support near the 55-day EMA as the Gold/Silver ratio rebounded from 73.11 to 80.10, 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 -$29
It trades below 21 and above 55- EMA, and 200 EMA in the 4-hour chart. The near-term support is around $28.60 and a break below the target of $28.30/$27.90/$27. On the higher side, immediate resistance is around $29.50 and any breach above targets is $30/$30.70/$31.50/$32/$32.50.
It is good to sell on rallies around $29.45-50 with SL at around $30 for TP at $27.90.
