Ichimoku analysis (4-hour chart)
Tenken-Sen- $29.58
Kijun-Sen- $28.77
Silver showed a minor sell-off due to profit booking.It hit a high of $29.97 yesterday and is currently trading around $29.60.
Silver surged more than 10% in the past two weeks as the market speculates Fed rate cut in Sep. Markets eye FOMC meeting minutes and Fed chairman speech at Jackson Hole symposium.
The easing geopolitical tension in the Middle East put pressure at lower levels.
Gold-silver ratio-
Gold/Silver ratio-84.47. The gold-silver ratio showed a minor decline from 89.95 to 84.45 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 -$30
It trades above 21, above the 55- EMA and 200 EMA in the 4-hour chart. The near-term support is around $29.10 and a break below the target of $28.60/$28. On the higher side, immediate resistance is around $30 and any breach above targets is $30.90/$31.75/ $32/$32.50.
It is good to buy on dips around $29 with SL at around $28.48, and TP at $32.50.
