FxWirePro- Silver Daily Outlook

Ichimoku analysis (4-hour chart)

Tenken-Sen- $29.20

Kijun-Sen- $29.11

Silver pared some of its gains after the weak US PMI data. It hit a high of $29.48 yesterday and is currently trading around $29.30.

The weak US housing data and manufacturing PMI will decrease the demand for industrial metals like silver and copper.

The surge in US treasury yield and the strong US dollar are putting pressure on silver at higher levels.

Gold-silver ratio-

Gold/Silver ratio- 79.34. The gold-silver ratio showed a minor decline from 80.59 to 78.97 as gold outperformed silver. The ratio is well above the historical average of 52. So silver will outperform gold in the long run. It is good to buy silver at lower levels compared to gold.

Major trend reversal level -$28.55

It trades below 21, 55- EMA, and 200 EMA in the 4-hour chart. The near-term support is around $28.50 and a break below the target of $27.94/$26. On the higher side, immediate resistance is around $29.50 and any breach above targets is $30/$31/$31.50/$32/$32.50.

It is good to buy on dips around $29 with SL at around $28.65, and TP at $30.