Silver pared some of its gains on weak Chinese demand. It hit a high of $32.71 and is currently trading around $31.50.
China National Bureau of Statistic
China’s Sep manufacturing PMI came at 49.8 from 49.50 previous month, compared to a forecast of 49.50.
Non-manufacturing PMI declined to 50 in Sep from 50.30 , expected 50.4.
Caixin manufacturing PMI dropped to 49.30 in Sep vs. Forecast of 50.50. While services PMI came in at 50.30 vs. Forecast of 51.60 from 50.30 previous month.
Gold-silver ratio-
Gold/Silver ratio-82.09. The gold-silver ratio formed a double top around 89.55 and this confirms silver would outperform gold in near future. The ratio is well above the historical average of 52.
Major trend reversal level -$32.75
It trades above 34, 55- EMA and 200 EMA in the daily chart. The near-term support is around $31.25 (23.6% fib) and a break below the target of $30.79/$30.35 (21- day EMA)/$30/$29.60. On the higher side, immediate resistance is around $32.75 and any breach above targets is $35.
It is good to buy on dips around $29.80-85 with SL at around $27.60 and TP at $35/$40.
