Ichimoku analysis (4-hour chart)
Tenken-Sen- $29.30
Kijun-Sen- $29.19
Silver showed a pullback after dismal US retail sales. It hit a high of $29.60 yesterday and is currently trading around $29.5980.
US retail sales rose 0.10% m/m in May below market expectations of 0.20%.
Core retail sales - -0.10% m/m vs . forecast of 0.20%.
The US 10-year yield declined nearly 10% this month as easing US inflation would increase the chance of an early rate cut.
Political uncertainty in France and tension in the Middle East protect silver from further downfall.
Gold-silver ratio-
Gold/Silver ratio- 79.50. The gold-silver rebounded from 73 to 79 as silver performed less than gold, well above the historical average 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, SL at around $30, and TP at $27.90.
