Ichimoku analysis (Daily chart)
Tenken-Sen- $25.11
Kijun-Sen- $25.20
Silver is trading higher for third consecutive days and surged nearly 0.90 cents on the weak US dollar. US dollar index is in the bearish mode and holding well below 92 and close below 91.50 confirms further bearishness. The minor selling in US bond yield also supporting precious metal. The US 10-yield declined more than 5% despite better than expected US CPI data. Markets eye US retail sales, jobless claims, and Philly Fed manufacturing index for further direction. It hits an intraday high of $25.635 and is currently trading around $25.616.
Technically, silver's significant support is around $25.13, violation below will drag the pair down to $24.80/$24.60/$24. Significant bearishness can be seen only if it breaks below $23.20.The near-term resistance is at $25.65 (55- day EMA), any surge past targets of $26/$26.65/$27 is possible.
Indicator (Daily chart)
CAM indicator –Slightly bullish
Directional movement index – Bearish
It is good to buy on dips around $25.45-50 with SL around $25 for TP of $27.
