FxWirePro -Silver Daily Outlook

Ichimoku analysis (4-hour chart)

Tenken-Sen- $30.96

Kijun-Sen- $31.07

Silver is trading weakly due to global economic growth concerns. It hit a high of $31.42 yesterday and is currently trading around $30.90.

Silver has shown a muted performance in contrast to gold. The weak Chinese economic data and dismal recent  US economic data put pressure on the industrial metal silver.  The recent dovish comments from Powell increase the chance of a rate cut in Sep.

The geopolitical tension in the Middle East supports silver at lower levels.

Gold-silver ratio-

Gold/Silver ratio- 76.67. The gold-silver ratio showed a minor pullback from 75.98 to 80.11 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 -$32.50

It trades below 21, above the 55- EMA and 200 EMA in the 4-hour chart. The near-term support is around $30.70 and a break below the target of $30.30/$29.80/$29. On the higher side, immediate resistance is around $31.50 and any breach above targets is $31.75/ $32/$32.50.

It is good to buy on dips around $30.60 with SL at around $29.80, and TP at $32.50.